Is the demand curve elastic or inelastic in the region

Reference no: EM13242559

a) Suppose a supply increase causes the equilibrium to shift from the one above so that the equilibrium quantity changes from that in the diagram to an equilibrium quantity of 200. What is the elasticity of demand along the above demand curve as you move from the original equilibrium point to a quantity of 200? (If you can show your work, partial credit is possible.)

b) Based upon your previous answer, is the demand curve elastic or inelastic in this region? Briefly explain.

c) Based upon your previous answer, does the total revenue for producers in the market increase or decrease as the quantity moves from the original equilibrium point to 200 (assuming all goods are sold)? Briefly explain.

Reference no: EM13242559

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