Lesson 3.5-Price Elasticity of Demand and Straight-line Demand Curves 1. Using the graph provided, analyze the effects of elasticity and total revenue using a straight-line demand curv a. When demand is unit elastic, is total revenue increasing, decreasing, or maximized? b. When demand is inelastic, is total revenue increasing, decreasing, or maximized? c. When demand is elastic, is total revenue increasing, decreasing, or maximized? d. Suppose you have just calculated price elasticity of demand and found E-1.5, is total revenue increasing, decreasing, or maximized? Suppose you have just calculated price elasticity of demand and found E,-0.4, is total revenue increasing, decreasing, or maximized? f. Suppose you have just calculated price elasticity of demand and found E-1, is total revenue increasing, decreasing, or maximized? Price (dollars) Total Revenue 86 32 2 Eg-5.66 I Elastic Range I E₁=1 LL 0 10 20 E-0.33 1 (b) Inelastic Range D 70 80 Quantity Demanded Total Revenue Quantity Demanded

Which of the following is likely to have the highest (in absolute value) demand elasticity? A.Cigarettes b.A necessary medication without close substitutes c.Camel brand cigarettes

The market for Harvard hoodies in the campus store is in equilibrium. They currently sell 25 hoodies in a week at a price of $50 per hoodie 1. What is the current revenue? 2 if they decrease the price of the hoodies from $50 to $40 the quantity demanded would increase from 25 to 40 hoodies A. What is the new revenue B. Calculate the price of the elasticity of the hoodie demand at these changes in price and quantity. 3. Assuming the same elasticity of demand as you just calculated if they instead increase the price from $50 to $ 75 A. What would be the new quantity demanded B. What would be the new revenue

23. Using the production possibilities table below, please answer the following question: Type of Production Schools Missiles Type of Production Schools Missiles A 0 16 A 0 16 Production Alternatives If the economy were at point D, what would be the opportunity cost of building 4 more schools? 24. Using the production possibilities table below, please answer the following question: B 4 15 B 4 15 Production Alternatives C 8 12 с 8 12 D 12 7 E 16 0 D 12 7 If the economy were at point D, what would be the opportunity cost of building one more missile? Please show your calculation for full points. E 16 0

Which of the following is likely to have the most price elastic demand? a. laptop computers Ob. tablets c. Microsoft Surface tablets d. cell phones

Give exact answer and take like

1. With unitary elasticity of demand, a. Percentage increase in price reduces quantity by equal percentage so that total revenue is constant b. Percentage increase in price leaves quantity demanded unchanged so that total revenue is constant c. Percentage increase in price reduces quantity demanded by 1% so that change in total revenue can increase or reduce

Donna Mia's is currently selling their dinner specials for $15.00 each. The restaurant is thinking about increasing that price by $3.00. They hired an economist to figure out how that would affect total revenue which is currently one hundred and fifty-six thousand dollars a month. The economist estimated that total revenue would fall by about 4.5percent. I A. What is the price elasticity of demand over the relevant range? B. How many dinners will be sold at the new price? C. Explain why this would/would not be a good idea. You must use the elasticity coefficient (explain what the number means), total revenue, and what you know about price elasticity of demand to support your answer. D. Graph this problem.

Please answer C and D:

Considering the concept of elasticity of demand, which of the following items is likely to be the most elastic?   a.     fresh water.   b.   tobacco / cigarettes   c.     medical procedures.   d.     bottled air from Banff.   e.   gasoline.