1) Draw the demand curve (put price on y-axis & quantity on x-axis).

2) Calculate price elasticity of demand between points C & D.

3)Calculate price elasticity of demand at point C.

(b) Show that when demand is elastic, ie |Ep|>1, total revenue, R, increases as price decreases.

6. (a) The following table shows the price-quantity combinations of four points of a good per day: Quantity demanded (in thousands) 200 150 100 50 (i) Draw the demand curve (put price on y-axis & quantity on x-axis). (ii) Calculate price elasticity of demand between points C 8:. D. (iii) Calculate price elasticity ofdemand at point C. (b) Show that when demand is elastic, ie |Ep | >1, total revenue, R, increases as price decreases