Using the chart below, complete 1 and 2 below.
|
Price
|
|
Quantity
|
|
per unit
|
|
demanded
|
|
|
|
|
|
$10.00
|
|
25
|
|
9.50
|
|
30
|
|
9.00
|
|
35
|
|
8.50
|
|
40
|
|
8.00
|
|
45
|
|
7.50
|
|
50
|
|
7.00
|
|
55
|
|
6.50
|
|
60
|
|
6.00
|
|
65
|
|
5.50
|
|
70
|
|
5.00
|
|
75
|
- Figure the elasticity of demand for each of the following showing all calculations:
- $10.00 to $ 9.50 b. $ 8.50 to $ 8.00
c. . $ 6.50 to $ 6.00 d. $ 6.00 to $ 5.50
e. $5.50 to $5.00
2. For each of the above write beside your answer whether the demand is elastic, inelastic, or unit elastic.
Problem 1
Complete the following table assuming perfect competition.
|
Q
|
TR
|
MR
|
MC
|
TVC
|
TFC
|
AFC
|
AVC
|
TC
|
Profit
|
|
0
|
|
|
|
|
|
|
|
15
|
|
|
1
|
|
|
|
|
|
|
|
55
|
|
|
2
|
|
|
|
|
|
|
|
85
|
|
|
3
|
|
|
|
|
|
|
|
105
|
|
|
4
|
|
|
|
|
|
|
|
115
|
|
|
5
|
|
|
|
|
|
|
|
140
|
|
|
6
|
|
|
|
|
|
|
|
170
|
|
|
7
|
|
|
|
|
|
|
|
211
|
|
|
8
|
|
|
|
|
|
|
|
271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price=30
|
|
|
|
|
|
|
|
|
|
At what level of output is profit maximized?