Reference no: EM13833416
1. Use the following coordinates to answer the following questions.
(2400, $0), (1800, $3), (1000, $7), and (0, $12)
a. Find the arc price elasticity of demand over the price range from $3 to $7. Interpret the value of price elasticity.
2. Suppose a firm sells 20,000 units at a price of $10, but sells 40,000 units at a price of $8.
Calculate the price elasticity of demand over these prices using the arc interval formula.
Determine if the price elasticity if demand is elastic, inelastic or unitary.
If prices were to fall another 4% what would be expected to happen to total revenue?
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: Suppose a firm sells 20,000 units at a price of $10, but sells 40,000 units at a price of $8. Calculate the price elasticity of demand over these prices using the arc interval formula. Determine if the price elasticity if demand is elastic, inelastic..
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