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c. What is the change in total revenue when the toll is decreased from $8 to $6? 8000 Incorrect

c. What is the change in total revenue when the toll is decreased from $8 to $6? 8000 Incorrect

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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c. What is the change in total revenue when the toll is decreased from $8 to $6? 8000 Incorrect
Transcribed Image Text:c. What is the change in total revenue when the toll is decreased from $8 to $6? 8000 Incorrect
Elasticity: Measuring Responsiveness - End of Chapter Problem An experiment is conducted that provides the data in the accompanying table. Number of vehicles using the tollway per day 10,000 12,000 Toll rate $8 $6 a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6 (use the midpoint method)? Round to the nearest hundredth. Absolute value of price elasticity of demand: 0.58 Incorrect b. Price elasticity of demand for the toll road is considered to be inelastic.
Transcribed Image Text:Elasticity: Measuring Responsiveness - End of Chapter Problem An experiment is conducted that provides the data in the accompanying table. Number of vehicles using the tollway per day 10,000 12,000 Toll rate $8 $6 a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6 (use the midpoint method)? Round to the nearest hundredth. Absolute value of price elasticity of demand: 0.58 Incorrect b. Price elasticity of demand for the toll road is considered to be inelastic.
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