Consider the demand curve illustrated in the figure to theright.Is demand elastic or inelastic?A. Demand is elastic at all prices above $8.00 andinelastic at all prices below $8.00.B. Demand is elastic at all prices above $6.00 andinelastic at all prices below $6.00.C. Demand is elastic (at all prices).D. Demand is inelastic (at all prices).E. Demand is inelastic at all prices above $8.00 andelastic at all prices below $8.00.At what price is total revenue maximized?Total revenue is maximized when price equals $ (Enteryour response as a real number rounded to two decimalplaces.)CPrice20-18-16-14-12-10-8-6-4.2-0246D810 12 14Quantity1618 In the graph on the right, the demand for hot dog buns haschanged because the price of hot dogs has risen from$3.00 to $3.50 per package.The cross-price elasticity of demand between hot dogs andhot dog buns is. (Use the midpoint formula and enteryour response rounded to two decimal places. Be sure toinclude the minus sign if necessary.)CPrice (dollars per package of buns)4.00-3.75-3.50-3.25-3.00-2.75-2.50-2.25-2.00-1.891.75-1.50-1.25-1.00-0.75-0.50-0.25-0.00+0Hot dog bunsS•D₁D₂6,000 7,0009,0003,000 6,000 9,000 12,000 15,00Quantity (packages of buns per week)

Consider the demand curve illustrated in the figure to the right. Is demand elastic or inelastic? A. Demand is elastic at all prices above $8.00 and inelastic at all prices below $8.00. B. Demand is elastic at all prices above $6.00 and inelastic at all prices below $6.00. C. Demand is elastic (at all prices). D. Demand is inelastic (at all prices). O E. Demand is inelastic at all prices above $8.00 and elastic at all prices below $8.00. At what price is total revenue maximized? Total revenue is maximized when price equals $ (Enter your response as a real number rounded to two decimal places.) Price 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 2 4 6 D 8 10 12 Quantity 14 16 18

Consider the demand curve illustrated in the figure to the right. Is demand elastic or inelastic? A. Demand is elastic at all prices above $8.00 and inelastic at all prices below $8.00. B. Demand is elastic at all prices above $6.00 and inelastic at all prices below $6.00. C. Demand is elastic (at all prices). D. Demand is inelastic (at all prices). O E. Demand is inelastic at all prices above $8.00 and elastic at all prices below $8.00. At what price is total revenue maximized? Total revenue is maximized when price equals $ (Enter your response as a real number rounded to two decimal places.) Price 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 2 4 6 D 8 10 12 Quantity 14 16 18

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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