Question:
Given the following demand function:
Price Quantity Arc Elasticity Total Revenue Marginal Rev.
P Qd(Units) Ed ($) ($/Unit)
$12 30 n.a. _________ n.a.
11 40 _________ __________ _________
10 50 _________ __________ _________
9 60 _________ _________ _________
8 70 _________ __________ _________
7 80 _________ __________ __________
6 90 _________ __________ __________
5 100 _________ __________ __________
4 110 _________ __________ __________
a. Compute the associated arc elasticity, total revenue, and marginal revenue values.
b. On separate graphs, plot the demand function, total revenue function, and marginal revenue function.