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- Draw the price effect and the quantity effect fora price change from $60 to $70. Which effect islarger? Does total revenue increase or decrease?No calculation is necessary.What is total revenue if price and quantity and $5 and 20 unitsplease show answer for graph and multiple choice Draw a curve that shows the relationship between quantity and total revenue when the demand curve for umbrellas is linear. Label it TR. Draw a point on the curve at which demand is elastic. Label it Elastic. Draw a point on the curve at which demand is inelastic. Label it Inelastic. Draw a point on the curve at which demand is unit elastic. Label it Unit Elastic. IT If demand is elastic, what is the effect of a 1 percent price cut on the quantity sold? If demand is elastic, a 1 percent price cut sold by OA. increases; more than 1 percent the quantity *** 50 O A. increases; more than 1 percent B. decreases; 1 percent C. decreases; more than 1 percent D. increases; less than 1 percent 40- 30- 20 10- 0+ If demand is elastic, a 1 percent price cut sold by 10 Quantity (millions of umbrellas per year) >>> Draw only the objects specified in the question. Total revenue (millions of dollars per year) 0 12 the quantity
- If you wanted to increase demand for your restaurant butare unable to lower prices or increase advertising, whatsteps might you take?Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Q1: Calculate the price elasticity of demand for small drinks. (Show your work. Q2: Is the price elasticity of demand for small drinks price elastic, inelastic, or unit (unitary)?Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Q1: Calculate the total revenues earned by the theater last month and this month (Show work please) Q2: Calculate the price elasticity of demand for large drinks. (Show work please) Q3: Is the price elasticity of demand for large drinks price elastic, inelastic, or unit (unitary)?
- Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Q1: Calculate the price elasticity of demand for candy. Q2: Is the price elasticity of demand for candy price elastic, inelastic, or unit (unitary)?Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Q1: Calculate the price elasticity of demand for small popcorn Q2: Is the price elasticity of demand for small popcorn price elastic, inelastic, or unitPrice Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Q1: Calculate the price elasticity of demand for large popcorn (show work) Q2: Is the price elasticity of demand for large popcorn price elastic, inelastic, or unit (unitary)? Q3:
- Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Q1: Calculate the price elasticity of demand for hot dogs Q2: Is the price elasticity of demand for hot dogs price elastic, inelastic, or unit (unitary)?Good or Service Price Elasticity Income Elasticity Beef -0.5 0.51 Long Distance Telephone -0.32 1.2 Cigarettes All smokers -0.7 0.9 Ages 15-18 -1.4 1.5 What will happen to sales for long-distance telephone if its price increases by 5% and income increases by 8%? Select one: a. Sales will decrease by 5%. b. Sales will increase by 5%. c. Sales will decrease by 8%. d. Sales will increase by 8%.6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 2 Total Revenue PRICE (Dollars per bike) 88NR S 89 88 89 O 300 275 18 27 35 45 54 53 72 QUANTITY (Bikes) 91 Demand 90 99 108
