Assume that the following table represents the demand schedule for the product of your company: Price 0 10 20 30 40 50 60 70 80 Quantity 160 140 120 100 80 60 40 20 0 per day Total Revenue (TR) Use your knowledge about the relationship between elasticity, prices and revenue how you would maximise the total revenue of a company that produces an inelastic good. Substantiate your answer with appropriate diagrams.

Assume that the following table represents the demand schedule for the product of your company: Price 0 10 20 30 40 50 60 70 80 Quantity 160 140 120 100 80 60 40 20 0 per day Total Revenue (TR) Use your knowledge about the relationship between elasticity, prices and revenue how you would maximise the total revenue of a company that produces an inelastic good. Substantiate your answer with appropriate diagrams.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

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