Define different price-elasticities of demand

Reference no: EM13180070

Consider the two different price-elasticities of demand for two different markets below:

a. ED =5/11 b. ED = 7/4

For each market (a. & b.) would it be to the producer's advantage (i.e. would TR increase) to raise or lower price? If P0 = $10.00 and Q0 = 100 units, justify your answers by applying the interpretations of those price-elasticities of demand on those numbers.

Reference no: EM13180070

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