A small grocery store faces the following demand for lobster. PRICE & QUANTITY: $0 and 80 quantities. $ 6 and 60 quantities, $12 and 40 quantities, $18 and 20 quantities, $24 and 10 quantities. The grocer is currently charging $18 per pound and is thinking of lowering the prices of lobster to $12 per pound. Using the demand information given, find the price elasticity od demand for lobster. Is demand inelastic, elastic or unit elastic? Based on your elasticity findings and without doing any further computations, determine whether or not a price decrease from 18 to 12 will increase revenue from the grocer. Briefly explain your answer.
7 Introduction:
Macroeconomics deals with the economy as a whole. The millions of individual microeconomic decisions of the people, businesses, and government in their totality represent a nation’s economy.
Tasks:
Provide an argument to describe the current state of the economy in terms of the following:
The economic goals
The definition of the phases of the business cycle
The key economic variables described in the text