Calculating the total revenue for each level of demand


Question: Prepare a two- to three-page analysis by answering the questions below. Be sure to cite your references using APA format.

Demand Schedule for Barbeque Dinners

Price

Quantity Demanded


Total Revenue

Elasticity Coefficient

Elastic or Inelastic

$4

100


__________

XXXX

XXXX

6

80


__________

__________

__________

8

60


__________

__________

__________

10

40


__________

__________

__________

12

20


__________

__________

__________

14

1


__________

__________

__________


Q1. Calculate the total revenue for each level of demand.

Q2. Using the midpoints formula presented in the text, calculate the elasticity coefficient for each price level, starting with the coefficient for the $4 to $6 level. For each coefficient, indicate what type of elasticity is indicated, elastic demand, inelastic demand, or unitary demand.

Q3. Define elastic, inelastic, and unitary elasticity means. How are these related to total revenue?

Q4. Explain how the elasticity changes as price increases. Why is this happening?

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Microeconomics: Calculating the total revenue for each level of demand
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