- Answer The Following Questions Based On The Accompanying Diagram Price 20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 Quantity 1 (365.04 KiB) Viewed 35 times
Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 Quantity
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Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 Quantity
Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 Quantity 5 D 6 7 Instructions: All dollar responses should be entered as whole numbers. Include a minus (-) sign for all negative answers. a. How much would the firm's revenue change if it lowered price from $12 to $10? Is demand elastic or inelastic in this range? Revenue change: $1 Demand is (Click to select) in this range. b. How much would the firm's revenue change if it lowered price from $4 to $2? Is demand elastic or inelastic in this range? Revenue change: $ Demand is (Click to select) in this range. c. What price maximizes the firm's total revenues? What is the elasticity of demand at this point on the demand curve? Price that maximizes total revenues: $ Demand is (Click to select) at this point.