At what price is total revenue maximized

Reference no: EM131072578

Consider the information in the table below that describes the demand for movie rentals from your on-line supplier Instant Flicks.

(a) Either on graph paper or a spreadsheet, map out the demand curve.

(b) In column 3, insert the total revenue generated at each price.

(d) In column 4, compute the elasticity of demand corresponding to each $1 price reduction, using the average price and quantity at each state.

(e) Do you see a connection between your answers in parts (c) and (d)?

Reference no: EM131072578

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