Question

demanded by no more/leserseny e the price elasticity of demand 2. If a firm can sell 3.000 units of product A at SIO per unit and 5.000 at 58, then the price elasticny of demand is (value) and it is (elastic/inelastic): (show your work) The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 1000 units. Therefore, demand for X in this price range is is (value) and it is (elastic/inelastic). (explain your answer) 5. What's true about elasticity of demand when total revenue maximized? Explain your answer. Suppose the price elasticity of demand for bread is 0.20. If the price of bread fails by 10 percent, the quantity demanded Fll increase by: (show your work).

please answer questions 2, 3,4, 5

Answer 1

(2) If a firm can sell 3000 Unit of products A at $10 per unit and 5000 unit at $8 then the price elasticity of demand is a and it į Elastic Pi$10 P2 =$8 Q,=3000 Q2 = 5000 Price elasticity of demand = 92-Q1 = h - P qata, Pztp, Tepl 2 > 5000-3000 · 8 5000+3000 The absolute value of Flannuity is greater than I mean Elastic = -2.25 6) Therefore, denand for x is -1.72 in their and it in price Range Elastic Because P = $100 9,=50 P = $90 Q2 = 60 Price elasticity of demand = 92-01 - Pere 60-50 60170 90-100 gotoo 2

When total Revenue is maxinured, then Elasticity of demand value in -I mean it is unit elasticity that mean the & Percentage change in Quantly i equal to percentage change in Price price elasticity of demand for bread = .0.20 » Pucutage change in o t Quantity of Bread - 0.20 G Pucentage change in of percentage change in Quantity of Bread = 0.20 -:10 & percentage change over op in Quanhinyo of Bread =-0.02 Hence the Quantity demand will decrease / by 20