What is the effect of a price increase on total revenue

Reference no: EM13183214

The following table shows part of the demand function for tickets to an outdoor summer concert by a popular singing group:

Price (P)...Quantity (Q)
50........... 100
35.......... 180
20............300
10............500

What is demand elasticity in the $35 - $50 price range? Is demand elastic, inelastic, or of unitary elasticity? Calculate the value and show all of your work. Be sure to use the midpoint equation to determine elasticity.

Assume demand elasticity is 1.0 in the $20 - $35 price range. In this range of demand, by what percentage would quantity demanded change if price decreases by 5 percent? Show your detailed calculations

What is the effect of a price increase from $10 to $20 on total revenue for the event? Does total revenue (TR) increase, decrease, or remain the same? By how much?

Reference no: EM13183214

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