Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 5

In the chapter,you learned about the relationship between price elasticity of demand and total revenue,and also between total revenue and marginal revenue.
a. Using the information in Figure 1,calculate the price elasticities of demand for Ned's Beds when price changes from $450 to $400,from $400 to $350,and from $350 to $300.
b. Now shift your attention from Figure 1 to Table 1 in the chapter. Is the behavior of total revenue in the table consistent with each of the elasticities that you found in part a.? Explain briefly.
c. Is the behavior of marginal revenue in the table consistent with each of the elasticities that you found in part a.? Explain briefly