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In: Economics

For the following demand function, QD = 100 – P, answer the following questions a. what...

For the following demand function, QD = 100 – P, answer the following questions

a. what is the point elasticity of demand at P = 80?

b. what is the point elasticity of demand at P = 20?

c. at what price is demand unitary price elastic?

d. demand is price elastic for prices between __________ and ___________

e. Consider your answer to part d., what happens to revenues as prices decrease within this range? Are marginal revenues positive, constant or negative in this range of prices?

f. demand is price inelastic for prices between __________ and ___________

g. Consider your answer to part f., what happens to revenues as prices decrease within this range? Are marginal revenues positive, constant or negative in this range of prices?

h. How many units of this good does a firm facing this demand curve have to produce to maximize its revenues?

i. What are maximum revenues for this firm?

j. Draw the total revenue curve associated to this demand curve.

***PLEASE ANSWSER ALL QUESTIONS***

Expert Solution

Rahul Sunny answered 2 years ago

. For the following demand function, QD = 100 – P, answer the following questions a....

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