Q 2. i) How can we differentiate Elastic and Inelastic Price Elasticity of Demand? ii) Calculate Total Revenue (TR), Marginal Revenue (MR) and Average Revenue (AR) for the following set of data. Quantity Price Total Marginal Revenue Revenue 80 1 76 2 72 3 68 4 64 60 56 7 52 48 44 If price increases what will be the effect on Total Revenue (TR) in case of a) Elastic, b) Inelastic & c) Unitary Elastic Price Elasticity of Demand?

Q 2. i) How can we differentiate Elastic and Inelastic Price Elasticity of Demand? ii) Calculate Total Revenue (TR), Marginal Revenue (MR) and Average Revenue (AR) for the following set of data. Quantity Price Total Marginal Revenue Revenue 80 1 76 2 72 3 68 4 64 60 56 7 52 48 44 If price increases what will be the effect on Total Revenue (TR) in case of a) Elastic, b) Inelastic & c) Unitary Elastic Price Elasticity of Demand?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. this question is too complicated