Share

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

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?

#### APPEARS IN

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