Managerial Economics & Business Strategy 7th Edition by Michael Baye, Stanley Brue, David MacPherson

تمرين 1

Answer the following questions based on the accompanying diagram.
a. How much would the firm's revenue change if it lowered price from $12 to $10 Is demand elastic or inelastic in this range
b. How much would the firm's revenue change if it lowered price from $4 to $2 Is demand elastic or inelastic in this range
c. What price maximizes the firm's total revenues What is the elasticity of demand at this point on the demand curve