55- 50 45 40- 35 30 25 20 15 10 234 56 -5 -10 -15 -20 +--. -25 -30 ---L -35 -40 -45 -50 -55 (4) Connect the ten dots to form a line and label it as Marginal Revenue (or MR). (5) Now, let's plot the straight line demand curve using the initial point (P, Q) = (S50, 0) and the endpoint (P, Q) - (S0, 10), taken from Columns 1 and 2. Label this line as Demand (or D) (Note: You are to connect two coordinates. No midpoint consideration is needed.) (6) From the graph, the MR curve cut the horizontal axis at the of the horizontal intercept. Answer: (7) At the point you identify in (6), is the demand elastic, unit elastic or inelastic (with respect to own price)? Answer:
55- 50 45 40- 35 30 25 20 15 10 234 56 -5 -10 -15 -20 +--. -25 -30 ---L -35 -40 -45 -50 -55 (4) Connect the ten dots to form a line and label it as Marginal Revenue (or MR). (5) Now, let's plot the straight line demand curve using the initial point (P, Q) = (S50, 0) and the endpoint (P, Q) - (S0, 10), taken from Columns 1 and 2. Label this line as Demand (or D) (Note: You are to connect two coordinates. No midpoint consideration is needed.) (6) From the graph, the MR curve cut the horizontal axis at the of the horizontal intercept. Answer: (7) At the point you identify in (6), is the demand elastic, unit elastic or inelastic (with respect to own price)? Answer:
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Monopoly
Section: Chapter Questions
Problem 7PA
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