Problem
Mindy is trying to estimate the elasticity of demand for a product she wants to sell at a craft fair. She has been told that she can expect to sell 10 items if she charges a price of $10, six items if she charges a price of $20, and 18 items at a price of $5.
a. Make a demand schedule to show the quantities demanded at each price, and plot a demand curve.
b. At which price would the total expenditures by consumers be greatest for the product? At what price would expenditures be the smallest?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.