Now assume that firm T faces a downward-sloping (straight-line) demand Fill in the columns for TR and MR in the table (Note that the figures for MR are entered between 0 and 1, 1 and 2, 2 and 3, etc.) The demand curve for the product of firm T Price (AR) (£) Quantity (Units) Total Revenue (TR) (£) Marginal Revenue (MR) (£) 20 18 16 14 12 10 8 6 0 1 2 3 4 5 6 7 ……… ……… ……… ……… ……… ……… ……… ………   ……… ……… ……… ……… ……… ……… ………   (b)    What is the price elasticity of demand at P = £10?.................................................................... (c)    Over what price range is demand price elastic?......................................................................... (d)      Over what price range is demand price inelastic? ....................................................................................

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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  1. Now assume that firm T faces a downward-sloping (straight-line) demand
    • Fill in the columns for TR and MR in the table (Note that the figures for MR are entered between 0 and 1, 1 and 2, 2 and 3, etc.)

The demand curve for the product of firm T

Price (AR) (£)

Quantity (Units)

Total Revenue (TR) (£)

Marginal Revenue (MR) (£)

20

18

16

14

12

10

8

6

0

1

2

3

4

5

6

7

………

………

………

………

………

………

………

………

 

………

………

………

………

………

………

………

 

(b)    What is the price elasticity of demand at P = £10?....................................................................

(c)    Over what price range is demand price elastic?.........................................................................

(d)      Over what price range is demand price inelastic? ....................................................................................

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