2. Consider the following demand schedule for widgets: Price ($ per widget) Quantity (# per month) 15 50 10 70 85 95 What is the price elasticity of demand for widgets between $8 and $10? What is the elasticity of demand between $2 and $4? As price decreases, demand becomes more / less elastic. What is total revenue nar month 442

2. Consider the following demand schedule for widgets: Price ($ per widget) Quantity (# per month) 15 50 10 70 85 95 What is the price elasticity of demand for widgets between $8 and $10? What is the elasticity of demand between $2 and $4? As price decreases, demand becomes more / less elastic. What is total revenue nar month 442

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

2. Consider the following demand schedule for widgets:
Price ($ per widget)
Quantity (# per month)
15
50
70
10
8.
6.
4.
85
95
What is the price elasticity of demand for widgets between $8 and $10?
What is the
elasticity of demand between $2 and $4?
As price decreases, demand becomes
more / less elastic. What is total revenue per month at a price of $10?
A reduction
in price from $10 to $8 causes total revenue to rise / fall because demand is elastic / inelastic. If
price is currently $10, then a 1% decrease in price will cause a
percent increase/
decrease in quantity demanded.

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