Imagine you are the owner of a business manufacturing and selling a particular type of table in the home furniture industry. Also, you have carried out some market research and found that the total number of customers wishing to buy the table varies with changes in price of the table as shown below. Product. Table Price (E) Quantity Demanded 100 140 180 220 260 300 340 380 770 680 610 550 500 460 400 320 Q1) Calculate total revenues at different prices Q2) Which price would yield the greatest revenue? Q3) Draw the demand curve for the tables

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
icon
Related questions
Question

Thank You!

Imagine you are the owner of a business manufacturing and selling a particular type of table in the home furniture
industry.
The average variable costs of producing each table are £180 while the fixed costs are £12,000.
Also, you have carried out some market research and found that the total number of customers wishing to buy the table
varies with changes in price of the table as shown below:
Product. Table
Price (E) Quantity Demanded
100
140
770
680
610
180
220
260
300
550
500
460
340
380
400
320
Q1) Calculate total revenues at different prices.
Q2) Which price would yield the greatest revenue?
Q3) Draw the demand curve for the tables
Price (E)
100
Quantity supplied
220
140
260
180
320
220
400
260
500
300
640
340
880
380
1400
Transcribed Image Text:Imagine you are the owner of a business manufacturing and selling a particular type of table in the home furniture industry. The average variable costs of producing each table are £180 while the fixed costs are £12,000. Also, you have carried out some market research and found that the total number of customers wishing to buy the table varies with changes in price of the table as shown below: Product. Table Price (E) Quantity Demanded 100 140 770 680 610 180 220 260 300 550 500 460 340 380 400 320 Q1) Calculate total revenues at different prices. Q2) Which price would yield the greatest revenue? Q3) Draw the demand curve for the tables Price (E) 100 Quantity supplied 220 140 260 180 320 220 400 260 500 300 640 340 880 380 1400
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Fundraising
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning