a. If the firm wishes to maximize its total revenue, at what price should it sell its pots?What is its total revenue? $ 247 *13b. Suppose that the firm were to increase its price by $4 from the price in (a). What will be the change in its total revenue? Give youranswer as an absolute number. 170 xWhat is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places.-2.32 *c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change in its total revenue? Give youranswer as an absolute number. 49 *What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places.0.40 x Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale in the Edmonton area. The graph below shows Aruna'sdemand curve.Price ($)40363228242016128404 812 16 20 24 28 32 36 40Quantity per period

The total amount of money a firm earns from selling its goods and services at a certain price is…

. If the firm wishes to maximize its total revenue, at what price should it sell its pots? 13 What is its total revenue? $ 247 Suppose that the firm were to increase its price by $4 from the price in (a). What will be the change in its total rev 170

. If the firm wishes to maximize its total revenue, at what price should it sell its pots? 13 What is its total revenue? $ 247 Suppose that the firm were to increase its price by $4 from the price in (a). What will be the change in its total rev 170

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a. If the firm wishes to maximize its total revenue, at what price should it sell its pots?
What is its total revenue? $ 247 *
13
b. Suppose that the firm were to increase its price by $4 from the price in (a). What will be the change in its total revenue? Give your
answer as an absolute number. 170 x
What is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places.
-2.32 *
c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change in its total revenue? Give your
answer as an absolute number. 49 *
What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places.
0.40 x

Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale in the Edmonton area. The graph below shows Aruna's
demand curve.
Price ($)
40
36
32
28
24
20
16
12
8
4
0
4 8
12 16 20 24 28 32 36 40
Quantity per period

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