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a. On the demand curve graph, place the end points of the demand curve such that at a quantity of 2 the price is $8 per unitand at a quantity of 16, the price of $1 per unitb. Use the information from the demand curve to plot a total revenue curve for a firm facing the plotted demand curveDemand CurveTotal Revenue Curve12605611Demand5210TR48944840367326282442016122814000 1 2 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 164 5 6 7 810 11 12 13 14 15 16QuantityQuantityTotal Revenue ($)coLO(s)эPrice

Question
a. On the demand curve graph, place the end points of the demand curve such that at a quantity of 2 the price is $8 per unit
and at a quantity of 16, the price of $1 per unit
b. Use the information from the demand curve to plot a total revenue curve for a firm facing the plotted demand curve
Demand Curve
Total Revenue Curve
12
60
56
11
Demand
52
10
TR
48
9
44
8
40
36
7
32
6
28
24
4
20
16
12
2
8
1
4
0
0
0 1 2 3
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
4 5 6 7 8
10 11 12 13 14 15 16
Quantity
Quantity
Total Revenue ($)
co
LO
(s)
э
Price
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a. On the demand curve graph, place the end points of the demand curve such that at a quantity of 2 the price is $8 per unit and at a quantity of 16, the price of $1 per unit b. Use the information from the demand curve to plot a total revenue curve for a firm facing the plotted demand curve Demand Curve Total Revenue Curve 12 60 56 11 Demand 52 10 TR 48 9 44 8 40 36 7 32 6 28 24 4 20 16 12 2 8 1 4 0 0 0 1 2 3 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 4 5 6 7 8 10 11 12 13 14 15 16 Quantity Quantity Total Revenue ($) co LO (s) э Price

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Step 1

Demand Curve: It refers to the curve that represents the relation between the demand for a commodity and its price keeping other things constant.

Total Revenue: It refers to the sum total of all the receipts from the sale of a good calculated by multiplying price and quantity of the commodity.

TR-PxQ
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TR-PxQ

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Step 2

(a) When the price is $8 the quantity demanded is 2 units and at a quantity of 16 units t...

Demand Curve
Price (in S)
18
16
14
12
10
8
6
4
2
0
0
1
2
3
4
5
6
7
9
Quanity Demanded
(In units)
un
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Demand Curve Price (in S) 18 16 14 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 9 Quanity Demanded (In units) un

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Business

Economics

Consumer demand theory

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