Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 15, Problem 3SPPA
To determine
The calculation of marginal revenue, its comparison with price and the type of market is to be determined.
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Refer to the demand schedule below.
a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity.
Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a
negative sign (-) in front of those numbers.
Quantity
Demanded (Q)
Price (P)
Total Revenue
Marginal Revenue
$7.00
0.00
6.50
24
6.50
%24
6.50
6.00
12.00 $
5.50
5.50
%24
16.50
24
4.50
5.00
4.
24
20.00
%24
3.50
4.50
24
22.50 $
2.50
4.00
%24
24.00 $
1.50
3.50
%24
24.50
24
0.50
3.00
8.
24.00
24
-0.50
2.50
22.50
24
-1.50
26
Tools
24
TR
22
20
TR
D.
18
16
14
12
MR
10
8.
4
D.
MR
-2
0 1 2 3 4 5 6 7 8 9 10
Quantity
Instructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter the highest price first.
c. Use Chapter 6's total-revenue test for price elasticity to designate the elastic and inelastic segments of your graphed demand curve.
Demand is elastic from a price of $
Demand is inelastic from a…
Use the table given to answer the questions.
Demand for Air Fryers at Ally's shop
Price (P) Quantity (Q)
140
110
80
50
I
2
3
4
Total Revenue
140
220
240
200
Marginal Revenue
140
80
20
-40
What is the Output Effect of decreasing the price of air fryers from $110 to $80? $
20
Incorrect
What is the Discount Effect of decreasing the price of air fryers from $110 to $80? $
60
< Feedback
Your answer to the first blank is
incorrect. To find the output effect, you
have to calculate the increase in
revenue coming from the sale of that
additional unit.
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Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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