1. Annual purchases of laptop computers price of $3000, 20 000 at a price of $2000, and 30 000 at a price of $1000. a. Draw a graph showing this demand curve. Plot three points to draw the curve. b. Find sellers' total revenue at each price. c. On the basis of your answer to part b, is the market demand curve for laptop computers elastic or inelastic in the price range $3000 to $2000? in the price range $2000 to $1000? d. Calculate the numerical values of price elasticity of demand, e, in the two relevant price ranges using the formula found in the chapter. e. Are your answers to parts c and d for the two relevant price ranges

1. Annual purchases of laptop computers price of $3000, 20 000 at a price of $2000, and 30 000 at a price of $1000. a. Draw a graph showing this demand curve. Plot three points to draw the curve. b. Find sellers' total revenue at each price. c. On the basis of your answer to part b, is the market demand curve for laptop computers elastic or inelastic in the price range $3000 to $2000? in the price range $2000 to $1000? d. Calculate the numerical values of price elasticity of demand, e, in the two relevant price ranges using the formula found in the chapter. e. Are your answers to parts c and d for the two relevant price ranges

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2PA

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