economic Price, $5.004.754.504.254.003.753.503.253.00QuantityElasticInelasticPriceFrom100.0140.0180.0220.0260.0300.0340.0380.0420.0460.0500.0540.0580.0b)-8.00-5.43-4.00-3.09-2.46-2.00-1.65-1.37-1.142.75-0.962.50-0.802.25-0.672.00-0.55c) At which prices is demand elastic, inelastic, and unit elastic? Enter your answers using cell references to the table above.Price (P) =Quantity (Q)=460Revenue =Q = 900ElasticityPriceTo160 P$3.00$5.00$275.00$2.00The demand is unit elastic at some price betweend) Are there prices between $2 and $5 which you are certain the company should not charge based on the elasticities youobserve? Assume your ice cream must be priced in $.25 increments.andThe company should not charge belowe) If the goal of this firm was to maximize revenue, what price would you recommend they charge for a pint of ice cream? Usefunctions and Excel's Solver functionality.

Demand equation Q=900-160P Demand and price data:

Answered: c) At which prices is demand elastic,…

c) At which prices is demand elastic, inelastic, and unit elastic? Enter your answers using cell references to the table above. Price Price

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

economic

Price, $
5.00
4.75
4.50
4.25
4.00
3.75
3.50
3.25
3.00
Quantity
Elastic
Inelastic
Price
From
100.0
140.0
180.0
220.0
260.0
300.0
340.0
380.0
420.0
460.0
500.0
540.0
580.0
b)
-8.00
-5.43
-4.00
-3.09
-2.46
-2.00
-1.65
-1.37
-1.14
2.75
-0.96
2.50
-0.80
2.25
-0.67
2.00
-0.55
c) At which prices is demand elastic, inelastic, and unit elastic? Enter your answers using cell references to the table above.
Price (P) =
Quantity (Q)=460
Revenue =
Q = 900
Elasticity
Price
To
160 P
$3.00
$5.00
$275.00
$2.00
The demand is unit elastic at some price between
d) Are there prices between $2 and $5 which you are certain the company should not charge based on the elasticities you
observe? Assume your ice cream must be priced in $.25 increments.
and
The company should not charge below
e) If the goal of this firm was to maximize revenue, what price would you recommend they charge for a pint of ice cream? Use
functions and Excel's Solver functionality.

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