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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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2. The price of a badminton set rises from P800 to P900. Total revenue falls from
P40,000 to P36,000.
a. How much is Qd at each price?
TR
P.
Qd
P40,000
P800
P36,000
P900
b. What is the price elasticity of demand coefficient? Is the demand elastic or
inelastic? Price elasticity of demand = (Qd2 – Qd1)/Qd1
(P2 – P1)/P1
Transcribed Image Text:2. The price of a badminton set rises from P800 to P900. Total revenue falls from P40,000 to P36,000. a. How much is Qd at each price? TR P. Qd P40,000 P800 P36,000 P900 b. What is the price elasticity of demand coefficient? Is the demand elastic or inelastic? Price elasticity of demand = (Qd2 – Qd1)/Qd1 (P2 – P1)/P1
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