55- 50 45 40- 35 30 25 20 15 10 234 56 -5 -10 -15 -20 +--. -25 -30 ---L -35 -40 -45 -50 -55 (4) Connect the ten dots to form a line and label it as Marginal Revenue (or MR). (5) Now, let's plot the straight line demand curve using the initial point (P, Q) = (S50, 0) and the endpoint (P, Q) - (S0, 10), taken from Columns 1 and 2. Label this line as Demand (or D) (Note: You are to connect two coordinates. No midpoint consideration is needed.) (6) From the graph, the MR curve cut the horizontal axis at the of the horizontal intercept. Answer: (7) At the point you identify in (6), is the demand elastic, unit elastic or inelastic (with respect to own price)? Answer:

55- 50 45 40- 35 30 25 20 15 10 234 56 -5 -10 -15 -20 +--. -25 -30 ---L -35 -40 -45 -50 -55 (4) Connect the ten dots to form a line and label it as Marginal Revenue (or MR). (5) Now, let's plot the straight line demand curve using the initial point (P, Q) = (S50, 0) and the endpoint (P, Q) - (S0, 10), taken from Columns 1 and 2. Label this line as Demand (or D) (Note: You are to connect two coordinates. No midpoint consideration is needed.) (6) From the graph, the MR curve cut the horizontal axis at the of the horizontal intercept. Answer: (7) At the point you identify in (6), is the demand elastic, unit elastic or inelastic (with respect to own price)? Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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