Assume that the following table represents the demand schedule for the product of your company: Price 0 10 20 30 40 50 60 70 80 Quantity 160 140 120 100 80 60 40 20 0 per day Total Revenue (TR) a. Complete the table by calculating the total revenue (TR) figures. b. At what price and quantity is revenue maximised? c. Use the data above to draw the relevant demand curve and the corresponding total revenue (TR) values. d. Use your knowledge about the relationship between elasticity, prices and revenue how you would maximise the total revenue of a company that produces an inelastic good. Substantiate your answer with appropriate diagrams.

Assume that the following table represents the demand schedule for the product of your company: Price 0 10 20 30 40 50 60 70 80 Quantity 160 140 120 100 80 60 40 20 0 per day Total Revenue (TR) a. Complete the table by calculating the total revenue (TR) figures. b. At what price and quantity is revenue maximised? c. Use the data above to draw the relevant demand curve and the corresponding total revenue (TR) values. d. Use your knowledge about the relationship between elasticity, prices and revenue how you would maximise the total revenue of a company that produces an inelastic good. Substantiate your answer with appropriate diagrams.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter1A: Appendix: Working With Graphs

Section: Chapter Questions

Problem 1E

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