The data given in the demanded schedule would plot as a, Ask an Expert

Economics

Calculation of elasticity of demand and marginal revenue.

Use the following hypothetical demand schedule for tea to answer the following problem:

Quantity demanded/ week	Price/ Oz.	(Elasticity)
1,000 oz.	$5
800	10
600	15
400	20
200	25

a.Using the above demanded schedule, describe the elasticity of demand for each price change. (ex: when price changes from $5 to $10, quantity demanded changes from 1000 to 800 oz., so the elasticity of demand, using average values, is 1/3 or 0.33).

b.The data given in the demanded schedule would plot as a straight line demand curve. Illustrate why is demand more elastic the higher the price gets?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M919523

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