2. For each of the following pairs of goods, indicate which has the higher price elasticity...

2. For each of the following pairs of goods, indicate which has the higher price elasticity of demand and explain why.

a. Denim jeans or Levi’s jeans?

b. Breakfast foods or Kellogg’s Raisin bran?

c. Powdered sugar or cars?

3. Given the following demand curve : Qd = 750 – 2p

a. Calculate the point price elasticity when price = $100. Is demand elastic, inelastic or unit elastic

b. What is the TR function for this demand curve?

c. What is the MR function for this demand curve?

d. At what price is TR maximized and what is the TR at that price?

Expert Solution

Rahul Sunny answered 2 years ago

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2. For each of the following pairs of goods, indicate which has the higher price elasticity...

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