Calculate point price elasticity a a price of 3 and, Ask an Expert

Economics

Suppose the demand function for ginger ale is: Q = 20 - 2P. a.) If the price were increased from $5 to $6 what would happen to total revenue? b.) Calculate arc elasticity at the interval between P=$5 and P=$6 c.) Calculate point price elasticity a a price of $3 and calculate the point price elasticity at a point of $9. Is the demand price elastic or inelastic at these points? d.) At which price would a change in price and quantity result in no change in total revenue?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9438663

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