6. Recently the publisher of a Principles of Economics textbook lowered its price from $100 to $75 and (ceteris paribus) sales per year increased from 200 to 210 @ Cal State Fullerton. a. Calculate the elasticity of demand using both the “regular" and “midpoint" elasticity formula. What kind of demand is it? b. What were the total revenues at each price? Which price was yielded the greater total revenue and by how much?
6. Recently the publisher of a Principles of Economics textbook lowered its price from $100 to $75 and (ceteris paribus) sales per year increased from 200 to 210 @ Cal State Fullerton. a. Calculate the elasticity of demand using both the “regular" and “midpoint" elasticity formula. What kind of demand is it? b. What were the total revenues at each price? Which price was yielded the greater total revenue and by how much?
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 8PA: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase:...
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