(answered) – 1. Complete the table below. a. Calculate total revenue for each
(answered) – 1. Complete the table below. a. Calculate total revenue for each
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The Question
1. Complete the table below.??
a. Calculate total revenue for each price.
b. Use the midpoints formula on p. 131 to calculate price elasticity of demand for the four price intervals. The PowerPoint tutorial explains how to use the midpoints formula.
c. For each interval tell whether demand is elastic or inelastic with respect to price.?
Price?? Quantity demanded/week?? ?Total Revenue?????? Price elasticity??????? ?Elastic or Inelastic?
$ 9????????????????? 100???????????????????????????? _______________??????? ________________?????? __________________
?? 7??????????????????130???????????????????????????_______________??????? ________________?????? __________________???
?? 5??????????????????180???????????????????????????? _______________??????? ________________?????? __________________
?? 3???????????????? ?210???????????????????????? _______________??????? ________________?????? __________________
?? 1?????????????????? 230???????????????????????????? _______________??????? ________________?????? __________________
2.)In 2017 Michigan gasoline taxes will increase to raise funds for road repairs. Since the demand for gasoline is inelastic most of the tax will be passed to gasoline buyers.?
Suppose instead of raising gas taxes the state placed a 5% tax on the sales of new and used cars. Would this tax fall more on buyers or sellers? Explain carefully
1
Price
9
7
5
3
1
Quantity Revenue Price elasticity Elastic/inelastic
100
900
130
910 -0.9583333333 elastic
180
900 -1.0333333333 elastic
210
630
-3.25 elastic
230
230
-11 elastic
2…
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