Demand for Nuts is given by Q = 50 – 2P. (Not that dQ/Dp= - 2) 1)Calculate the price elasticity of demand.   2)At what price-quantity combination is revenue from sales of nuts maximized? Why? Show your mathematical work. Illustrate by graphing total revenue.   3) A report published in Science magazine shows that eating nuts is correlated with high levels of blood cholesterol. How would this affect the demand for nuts? The revenue maximizing amount of nuts?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
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Chapter5: Price Elasticity Of Demand And Supply
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Demand for Nuts is given by Q = 50 – 2P. (Not that dQ/Dp= - 2)

1)Calculate the price elasticity of demand.

 

2)At what price-quantity combination is revenue from sales of nuts maximized? Why? Show your

mathematical work. Illustrate by graphing total revenue.

 

3) A report published in Science magazine shows that eating nuts is correlated with high levels of

blood cholesterol. How would this affect the demand for nuts? The revenue maximizing amount of

nuts?

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