Question

How do you calculate own price arc elasticity, using these numbers?

ABM/FIM/EEP 303 Due: Oct. 8, 2018 Assignment #2: Analyzing Demand 1. (35 points total) The Arbor Vita Tree Company sells live trees. Years of sales experience reveal the demand for the ShadeKing Elm tree that is shown in the table below, where Price is in S/tree and Quantity refers to ShadeKing Elm trees sold annually (15 points) For your marketing analysis, please complete the table below. Use the arc elasticity formula. Please compute changes between the row above and the current row. (The ΔΟΔΡ and P/Q columns are for your convenience and will not be graded.) Marginal Revenue dTR/dQ. a. TQ Quantity Total Marginal bQ/AP P/O Price Own price (S/tree) (trees) Revenue (S) revenue (S/tree (not graded) (not graded) arc elasticity E(Q,P) 200 00 180 0 120 21, 00 180 160 240 38,400 140 140 360 50,400 100 120 480 5,000 0 600 b0,000 20 80 720 00 20 60 840 50.400-0 100 | | 39-y001-100一ㄒㄧ-0-1 /24 -- 960 40 20 | 1080 | 21,600|-140 |_elys4 0 1200 0180le b (10 points) Make two graphs, one below the other