Consider the following demand schedule: PriceQuantity demandedTotal revenue$103$30$ 94$36$ 85$40$ 76$42$ 67$42$ 58$40 Required: Using total revenue, identify the price range where the price elasticity of demand is relatively elastic. Using total revenue, identify the price range where the price elasticity of demand is relatively inelastic. Using total revenue, identify the price range where the price elasticity of demand is unit elastic. Discuss three factors that tend to make the price elasticity of demand for a product more elastic.

The elasticity of demand and Total revenue are related to each other. We can get the information of…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....

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Using total revenue, identify the price range where the price elasticity of demand is relatively elastic.
Using total revenue, identify the price range where the price elasticity of demand is relatively inelastic.
Using total revenue, identify the price range where the price elasticity of demand is unit elastic.
Discuss three factors that tend to make the price elasticity of demand for a product more elastic.

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