Reference no: EM13347686

Question 1. a. Using the data from table, calculate the elasticity of demand and elasticity of supply at each price change in the market for financial calculators using the midpoint formula for both supply and demand.

Price	Quantity Demanded	Elasticity of Demand	Quantity Supplied	Elasticity of Supply
$10	50,000	45000.15	3,000
$20	40,000		10,000	6500.15
$30	25,000	32500.25	15,000	12500.25
$40	20,000	17500.45	20,000	25000.45
$50	15,000	13500.55	30,000	37500.55
$60	12,000	8500.65	45,000	50000.65
$70	5,000	8500.65	55,000	50000.65
$80	2,000	3500.75	75,000	65000.75

b. Based on your elasticity calculation, if the price of financial calculators rises from $40 to $50 will total revenue go up or down? By how much?

Question 2. Your factory makes staplers.

a. Calculate the costs (TVC, AVC, AFC, TC, ATC, and MC) per day, given:
FC = $500

Each worker costs $100 per day

Materials to make the stapler cost $3 per stapler

b. Create two graphs.

On the first graph plot, AVC, AFC, ATC, and MC.

On the second graph, plot TVC, TFC and TC.

Don't forget to label your graphs clearly including the units used.

c. What level of production will minimize marginal costs? How many workers should they hire?

# of Workers	Q	TVC	AVC	AFC	TC	ATC	MC
			VC / Q	FC / Q	FC + VC	TC/Q
							?TC ?Q
0	0	0
1	100
2	250
3	400
4	800
5	1000
6	1050