The demand curve for product a is given as Q = 2000 - 20P. a. How many units will be sold at $10? b. At what price would 2,000 units be sold? 0 units? 1,500? c. Write equations for total revenue and marginal revenue (in terms of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue? e. What is the point elasticity at a price of $70? f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? g. At what price would elasticity be unitary?
The demand curve for product a is given as Q = 2000 - 20P. a. How many units will be sold at $10? b. At what price would 2,000 units be sold? 0 units? 1,500? c. Write equations for total revenue and marginal revenue (in terms of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue? e. What is the point elasticity at a price of $70? f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? g. At what price would elasticity be unitary?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a. How many units will be sold at $10?
b. At what
c. Write equations for total revenue and marginal revenue (in terms of Q).
d. What will be the total revenue at a price of $70? What will be the marginal revenue?
e. What is the point elasticity at a price of $70?
f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now?
g. At what price would elasticity be unitary?
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Step 1: Write an introduction
VIEWStep 2: A) Compute how many units will be sold when price is $10
VIEWStep 3: B) Compute at what prices the given units will be sold
VIEWStep 4: C) Compute MR
VIEWStep 5: D) Compute TR and MR when Price is $70
VIEWStep 6: E) Compute the point elasticity at a price of $70
VIEWStep 7: F) Compute the new point elasticity at price is $60
VIEWStep 8: G) Compute the price when elasticity is unitary
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