Download In Class Week 3 Own-price elasticity.xlsx

In Class Week 3: Own-price elasticity
Price
$10
$9
$8
$7
$6
$5
$4
$3
$2
$1
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$30
$28
$26
$24
$22
$20
$18
$16
$14
$12
$10
$8/0
Quantity Demanded
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Total Revenue
Own-price Elasticity
Calculate the total revenues from sales for each price point
Calculate the own-price elasticity at each price point (use the starting/initial price)
What is the own-price elasticity when total revenues are maximized?
How does price elasticity change as you move down the demand curve?
If demand is inelastic ( < |1|) how would you change price to increase total revenues?
If demand is elastic (>|1|) how would you change price to increase total revenue?
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