EBK BRIEF PRINCIPLES OF MACROECONOMICS
7th Edition
ISBN: 9780100469884
Author: Mankiw
Publisher: YUZU
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Question
Chapter 2.3, Problem 3QQ
To determine
The reason for the disagreement of the economist.
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HW Ch5
Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green
point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
2
@
3840
3520
3200+
2880
2560+
2240
TOTAL REVENUE (Dollars)
1920
1600
1280
960 +
640+
0
0 8
16
24
32
40 48 56
64
72
80
QUANTITY (Bippitybops per day)
Total Revenue
?
According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately .
Suppose the price of bippitybops is currently $60 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between
points A and B is
, a $20-per-bippitybop decrease in price will lead to
MacBook Air
in total revenue per day.
F2
80
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5
6
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F7
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F9
F10
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Chapter 2 Solutions
EBK BRIEF PRINCIPLES OF MACROECONOMICS
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