. 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
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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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
Transcribed Image Text: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
Transcribed Image Text: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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