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  • Homework Question For Chapter 4

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    The document contains homework questions about a demand curve for a product where QD = 300 - 2P. It asks the student to (1) calculate the elasticity of demand for a price increase from $8 to $10, (2) calculate the percentage change in total revenue from increasing price, (3) determine the price ranges where demand is elastic, inelastic, and unit elastic, (4) draw and label the total revenue curve, and (5) compare the elasticities of the curves QD = 300 - 2P and QD = 300 - 3P.

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    The document contains homework questions about a demand curve for a product where QD = 300 - 2P. It asks the student to (1) calculate the elasticity of demand for a price increase from $8 to $10, (2) calculate the percentage change in total revenue from increasing price, (3) determine the price ranges where demand is elastic, inelastic, and unit elastic, (4) draw and label the total revenue curve, and (5) compare the elasticities of the curves QD = 300 - 2P and QD = 300 - 3P.

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    Download as PDF, TXT or read online from Scribd
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    7 views1 page

    Homework Question For Chapter 4

    Uploaded by

    msunny1
    The document contains homework questions about a demand curve for a product where QD = 300 - 2P. It asks the student to (1) calculate the elasticity of demand for a price increase from $8 to $10, (2) calculate the percentage change in total revenue from increasing price, (3) determine the price ranges where demand is elastic, inelastic, and unit elastic, (4) draw and label the total revenue curve, and (5) compare the elasticities of the curves QD = 300 - 2P and QD = 300 - 3P.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Homework Question for Chapter 4

    1. Given the demand curve QD = 300 − 2P answer the following questions.

    (a) Calculate the elasticity of demand when Price increases from $8 to $10, is the
    elasticity of demand elastic, inelastic or unit elastic at this point? Explain.
    (b) By what percentage will the price increase in (a) changed total revenue?
    (c) Over what range of prices is the demand for this product elastic, inelastic and
    unit elastic?
    (d) Draw the Total Revenue curve that corresponds to this demand curve. Name
    something that will shift the total revenue curve.
    (e) Demonstrate on the Total Revenue curve the effect from raising the price from $8
    to $10.
    (f) Compared to the demand curve above, QD = 300 − 2P , is the demand curve
    QD = 300 − 3P more or less elastic? Explain. What assumption do you need to
    compare the elasticity of these two demand curves?

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