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? ....................................................................................
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? ....................................................................................
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
- 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
|
|
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
(c) Over what price range is demand price elastic?.........................................................................
(d) Over what price range is demand price inelastic? ....................................................................................
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