Question

80 $9 $8 $6 5. Use the following table to answer the this question: Price Quantity Demanded $10 100 120 140 160 The firm is currently charging a price of $8. If it wants to increase its total sales revenue, it should O raise price to $9. o lower price to $7. o leave the price at $8, because it will have excess demand at a lower price and excess supply at a higher price. o either raising or lowering price will increase total revenue. O neither raising nor lowering price will increase total revenue. 80 $7 6. Use the following table to answer the this question: Price Quantity Demanded $10 $9 100 $8 120 140 $6 160 In light of your answer to the previous question, we therefore know that at a price of $8, demand for the product O will increase if price falls. O will decrease if price rises. O is elastic. O is inelastic. O All of the above.

I need help with 5 and 6

Answer 1

(5)

Price	Quantity Demanded	Total Revenue
10	80	800
9	100	900
8	120	960
7	140	980
6	160	960

Total Revenue = Price * Quantity demanded

If firm is currently charging a price of $8, then in order to increase its total sales revenue firm should lower its price to $7.

Answer: Option (B)

(6) In case of elastic demand, there is negative relationship between price and total revenue.

At a price of $8, firm required to decrease its price to increase its total revenue.

Hence, at a price of $8 demand for the product is elastic.

Answer: Option (C).