1. Given demand function Q = 400 - .5P, we are interested to use spread sheet to find total revenue, marginal revenue, and price elasticity (point).
a. For the first row enter: price in column A, quantity in the column B, TR in column C, MR in column D, and Point elasticity in column E.
b. Using Excel starting at a price of 780 and decrease by 20 until P = 520.
c. Use the formula command to enter quantity using demand function Q = 400 - .5P and drag the formula command to fill out the rest of the column.
d. Using Excel chart wizard to produce a scatter plot for Q and Price. Make sure price is Y axis.
e. Find algebraic functions for inverse demand. Then derive TR, MR, and Point elasticity. Please write the functions before the next step.
f. Use the formula command to enter TR, MR, and point elasticity.