In Mt. Pleasant, the consumption of green tea seems to be related to political party membership. The demand for kilograms of tea pe month by party affiliation is shown in the table below. A single firm supplies green tea in Mt. Pleasant. Round your answers to 2 decimal places. Kilogram of Tea Price $5.80 5.20 4,60 4.00 3.40 2.80 al Complete Liberals Liberals Total Quantity Revenue 4 5 6 7 8 9 $ Conservatives Quantity 6 7 8 9 10 11 Conservatives Total Revenue $ NDP Quantity 8 9 10 11 12 13 NOP Total Revenue $ $ All 3 Parties Total Revenue

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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b) What single price should the firm charge everyone if it wants to maximize its total sales revenue and what will be its total revenue?
Round your answers to 2 decimal places.
Price: $
Total revenue: $
c) Suppose that the government of Mt. Pleasant allows the firm to price-discriminate on the basis of political affiliation. If the firm
wishes to maximize its total sales revenue, how much should it charge each group and what will be its total revenue? Round your
answers to 2 decimal places.
Liberal price: $
Conservative price: $
NDP price: $
Total revenue:
d) What is the price elasticity of demand for these three groups between the prices of $5.80 and $5.20? Round your answers to 2
decimal places.
Liberal
Conservative price: [
NDP:
e) What is the relationship between elasticity and the prices charged?
The greater the elasticity, the [(Click to select the price charged
Transcribed Image Text:b) What single price should the firm charge everyone if it wants to maximize its total sales revenue and what will be its total revenue? Round your answers to 2 decimal places. Price: $ Total revenue: $ c) Suppose that the government of Mt. Pleasant allows the firm to price-discriminate on the basis of political affiliation. If the firm wishes to maximize its total sales revenue, how much should it charge each group and what will be its total revenue? Round your answers to 2 decimal places. Liberal price: $ Conservative price: $ NDP price: $ Total revenue: d) What is the price elasticity of demand for these three groups between the prices of $5.80 and $5.20? Round your answers to 2 decimal places. Liberal Conservative price: [ NDP: e) What is the relationship between elasticity and the prices charged? The greater the elasticity, the [(Click to select the price charged
In Mt. Pleasant, the consumption of green tea seems to be related to political party membership. The demand for kilograms of tea pos
month by party affiliation is shown in the table below. A single firm supplies green tea in Mt. Pleasant.
Round your answers to 2 decimal places.
Kilogram
of Tea
Price
$5.80
5.20
4.60
4.00
3.40
2.80
Liberals
Quantity
4
5
6
7
B
9
Liberals Total
Revenue
$
Conservatives
Quantity
6
7
8
9
10
11
Conservatives
Total
Revenue
$
NDP
Quantity
8
9
19
11
12
23
NOP Total
Revenue
$
$
A11 3
Parties
Total
Revenue
a) Complete the table above.
b) What single price should the firm charge everyone if it wants to maximize its total sales revenue and what will be its total revenue?
Round your answers to 2 decimal places.
Price $
Total revenue: $
Suppose that the government of Mt. Pleasant allows the firm to price-discriminate on the basis of political affiliation. If the firm
wishes to maximize its total sales revenue, how much should it charge each group and what will be its total revenue? Round your
ariswers to 2 decimal places.
Liberal price $
Transcribed Image Text:In Mt. Pleasant, the consumption of green tea seems to be related to political party membership. The demand for kilograms of tea pos month by party affiliation is shown in the table below. A single firm supplies green tea in Mt. Pleasant. Round your answers to 2 decimal places. Kilogram of Tea Price $5.80 5.20 4.60 4.00 3.40 2.80 Liberals Quantity 4 5 6 7 B 9 Liberals Total Revenue $ Conservatives Quantity 6 7 8 9 10 11 Conservatives Total Revenue $ NDP Quantity 8 9 19 11 12 23 NOP Total Revenue $ $ A11 3 Parties Total Revenue a) Complete the table above. b) What single price should the firm charge everyone if it wants to maximize its total sales revenue and what will be its total revenue? Round your answers to 2 decimal places. Price $ Total revenue: $ Suppose that the government of Mt. Pleasant allows the firm to price-discriminate on the basis of political affiliation. If the firm wishes to maximize its total sales revenue, how much should it charge each group and what will be its total revenue? Round your ariswers to 2 decimal places. Liberal price $
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