How much would the firm’s revenue change if it lowered price from $12 to $10? Is demand elastic or inelastic in this range? Revenue change: $ Demand is in this range. b. How much would the firm’s revenue change if it lowered price from $4 to $2? Is demand elastic or inelastic in this range? Revenue change: $ Demand is in this range. c. What price maximizes the firm’s total revenues? What is the elasticity of demand at this point on the demand curve? Price that maximizes total revenues: $ Demand is at this point.
How much would the firm’s revenue change if it lowered price from $12 to $10? Is demand elastic or inelastic in this range? Revenue change: $ Demand is in this range. b. How much would the firm’s revenue change if it lowered price from $4 to $2? Is demand elastic or inelastic in this range? Revenue change: $ Demand is in this range. c. What price maximizes the firm’s total revenues? What is the elasticity of demand at this point on the demand curve? Price that maximizes total revenues: $ Demand is at this point.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2SQ
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Question
a. How much would the firm’s revenue change if it lowered
Revenue change: $
Demand is in this range.
b. How much would the firm’s revenue change if it lowered price from $4 to $2? Is demand elastic or inelastic in this range?
Revenue change: $
Demand is in this range.
c. What price maximizes the firm’s total revenues? What is the
Price that maximizes total revenues: $
Demand is at this point.
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