How price x quantity increases, remains constant

Reference no: EM133630405

Question: The "Brothers Lienert" import "powder-type" goods from Columbia for resale in the High Desert (sniff, sniff, sniff). They recognize that selling 1 pound of "de stuff" at $10,000 a bag brings in revenue, but cutting the price even more generates greater revenues!

They test this theory by creating a "schedule" illustrating how consumers "respond" to price changes for "de stuff"; they demonstrate how price x quantity increases, remains constant, then diminishes while, correspondingly, illustrating what is going on with demand for their product.

Note: Use increments of "10" for dollars and 1's for units sold.

Based on your answers to "de stuff" above, calculate consumer response patters at "one pt.," and "between two points." I.e. use the midpoint formula for elasticity.

Reference no: EM133630405

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