1. Answer the following questions based on the accompanying diagram. (LO], LO2, LO4) Price ($) 20 18 16 14 ONAADONI D Quantity 2 3 4
1. Answer the following questions based on the accompanying diagram. (LO], LO2, LO4) Price ($) 20 18 16 14 ONAADONI D Quantity 2 3 4 5 6 a. How much would the firm's revenue change if it lowered the price from $12 to $10? Is demand elastic or inelastic in this range? b. How much would the firm's revenue change if it lowered the price from $4 to $2? Is demand elastic or inelastic in this range? c. What price maximizes the firm's total revenues? What is the elasticity of demand at this point on the demand curve
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