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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 38CTQ: Do you think that the taxicab industry in large cities would be subject to significant economies of...

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