c. What is the change in total revenue when the toll is decreased from $8 to $6?8000Incorrect Elasticity: Measuring Responsiveness - End of Chapter ProblemAn experiment is conducted that provides the data in the accompanying table.Number of vehicles using the tollway per day10,00012,000Toll rate$8$6a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6 (use the midpoint method)?Round to the nearest hundredth.Absolute value of price elasticity of demand:0.58Incorrectb. Price elasticity of demand for the toll road is considered to beinelastic.

Elasticity will assist firms forecast with accuracy revenues and income. Companies are able to…

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c. What is the change in total revenue when the toll is decreased from $8 to $6? 8000 Incorrect

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

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Question

c. What is the change in total revenue when the toll is decreased from $8 to $6?
8000
Incorrect

Elasticity: Measuring Responsiveness - End of Chapter Problem
An experiment is conducted that provides the data in the accompanying table.
Number of vehicles using the tollway per day
10,000
12,000
Toll rate
$8
$6
a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6 (use the midpoint method)?
Round to the nearest hundredth.
Absolute value of price elasticity of demand:
0.58
Incorrect
b. Price elasticity of demand for the toll road is considered to be
inelastic.

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