Price ($) 40 36 32 28 24 20 16 12 00 4 0 4 8 12 16 20 24 28 32 36 40 Quantity per period a. If the firm wishes to maximize its total revenue, at what price should It sell its pots? 12 What is its total revenue? $ 216 b. Suppose that the firm were to Increase its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. 56 What is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places. -2 Ⓡ c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. 40 What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places. -0.54

Price ($) 40 36 32 28 24 20 16 12 00 4 0 4 8 12 16 20 24 28 32 36 40 Quantity per period a. If the firm wishes to maximize its total revenue, at what price should It sell its pots? 12 What is its total revenue? $ 216 b. Suppose that the firm were to Increase its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. 56 What is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places. -2 Ⓡ c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. 40 What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places. -0.54

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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