ppart 4 5 6Q4 The market demand for laptops in a certain city of Ontario is shown in the following table. Calculate TR and answer the questions given below the table. Price {$}Quantity demandedTotal revenue {TR}35005 300010 250015 150025 100030 50035 Do you think the demand is elastic when the price decreases from $1000 to $500? Why? {Apply TR test}Is the demand unit elastic between the price range of $2500 to $1500? Why? {Apply TR test}‘Demand is elastic when the price decreases from $3500 to $3000? Do you agree? Why? {Apply TR test}What is the numerical value of the price elasticity of demand, Ed in the price range of $2500 and $1500? Apply Averages Method.Will it be a smart decision to decrease the price from $1500 to $1000? Why?Will it be a smart decision to increase the price from $500 to $1500? Why?

The total of all individual commodity demands made by buyers in the market is known as market…

Answered: Q4 The market demand for laptops in a…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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ppart 4 5 6

Q4 The market demand for laptops in a certain city of Ontario is shown in the following table. Calculate TR and answer the questions given below the table.

Price {$}	Quantity demanded	Total revenue {TR}
3500	5
3000	10
2500	15
1500	25
1000	30
500	35

Do you think the demand is elastic when the price decreases from $1000 to $500? Why? {Apply TR test}
Is the demand unit elastic between the price range of $2500 to $1500? Why? {Apply TR test}
‘Demand is elastic when the price decreases from $3500 to $3000? Do you agree? Why? {Apply TR test}
What is the numerical value of the price elasticity of demand, E_din the price range of $2500 and $1500? Apply Averages Method.
Will it be a smart decision to decrease the price from $1500 to $1000? Why?
Will it be a smart decision to increase the price from $500 to $1500? Why?

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