*7 The demand schedule for computer chips is

 a What happens to total revenue if the price falls from a400 to a350 a chip? b What happens to total revenue if the price falls from a350 to a300 a chip? c At what price is total revenue at a maximum? Use the total revenue test to answer this question. d At an average price of a350, is the demand for chips elastic or inelastic? Use the total revenue test to answer this question.

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Price (euros per chip) Quantity demanded (millions of chips per year) 50 200 250 45 300 40 350 35 400 30 450 25 500 20