Problem: Here is some data on the demand for marshmallows:
Price Quantity
$10 1100
$ 8 1300
$ 6 1700
$ 4 2300
$ 2 3100
a) Is demand elastic or inelastic in the $6-$8 price range? How do you know?
b) If the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1700 units to 2300 units? Show all work.