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From the Schedule Provided Below Calculate the Total Revenue, Demand Curve and the Price Elasticity of Demand: - Economics

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ConceptOther Non - Perfectly Competitive Markets

Question

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

Quantity

1

2

3

4

5

6

7

8

9

Marginal Revenue

10

6

2

2

2

0

0

0

−5

Solution

 

Quantity

MR

TR

AR

Ed=`(DeltaQ)/(DeltaP) xxP/Q`

1

10

10

`10/1 = 10` 

2

6

10 + 6 = 16

`16/1 = 8`

`1/2xx10/2=5`

3

2

16 + 2 = 18

`18/3 = 6`

`1/2xx8/2 =2`

4

2

18 + 2 = 20

`20/4 =5`

`1/1xx6/3=2`

5

2

20 + 2 = 22

`22/5 = 4.5`

`1/0.5xx5/4=2.5`

6

0

22 + 0 = 22

`22/6 = 3.6`

`1/0.9xx4.5/5=1`

7

0

22

`22/7 = 3.1`

`1/0.5xx3.6/6 = 1.2`

8

0

22

`22/8 = 2.7`

`1/0.4xx3.1/7 = 1.1`

9

−5

22 − 5 = 17

`17/9 =1.9`

`1/0.8xx2.7/9 =0.38`

  Is there an error in this question or solution?

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Solution From the Schedule Provided Below Calculate the Total Revenue, Demand Curve and the Price Elasticity of Demand: Concept: Other Non - Perfectly Competitive Markets.
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