The following is a demand schedule for shoes: Price (Per Pair) $120 $100 $80 $60 $40 Quantity Demanded 8 15 25 28 30 (in pairs per year) As the price drops from $80 to $60 a pair, is demand elastic or inelastic?Based on your answer in (a), a shoes salesman should raise or cut price to increase the total revenue?

Answered: The following is a demand schedule for…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...

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The following is a demand schedule for shoes:

Price (Per Pair) $120 $100 $80 $60 $40

Quantity Demanded 8 15 25 28 30

(in pairs per year)

As the price drops from $80 to $60 a pair, is demand elastic or inelastic?
Based on your answer in (a), a shoes salesman should raise or cut price to increase the total revenue?

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