Deadweight Loss Exercise 1 Refer to the figure. Use the graph to show the area representing the deadweight loss, and then determine the deadweight loss created as a result of setting the price at $150 Instructions: Use the tool provided "Deadweight loss, DL" to illustrate this area on the graph. Graph Summary Instructions Tools Deadweight Loss, DL x Market for Game Consoles Enter the x and y coordinates for $600 each corner. $550 $500 Come: 1 of 3 $450 $400 Corner 2 of 3 Price S $350 $300 $250 X $200 Corner 3 of 3 $150 $100 X $50 D 0 Clear Done Deadweight loss $ SME 55H NVIDIA G-SYNC 10 20 30 40 50 60 70 80 90 100 110 Quantity

Confused and not sure how to answer

Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demand

Typed