A firm's demand function is defined as Q = 14 - 2P. a) Use this function to calculate total revenue when price is equal to 3 and when price is equal to 4. b) What is marginal revenue equal to between P=$3 and P=$4? If the income elasticity of cigarettes sold in China is 1.5:
a) What would happen to the quantity demanded of cigarettes if income increases?
b) Are cigarettes a "normal" or "inferior" good?
c) What would happen to the quantity demanded if household income were to rise by 1% next year?