.. (22000 + 76000) - (20620.6 1 7070 72510.0=3483.4 if PX, increase ,3%, the total revenue dea 5. (15 points, 1 pt each, one mistake free) Fill in the following table. 5485 2 Quantity Price Total Revenue Marginal Revenue Own Price Elasticity $50 CO to 2 $40 So 30 3 $30 10 13 4 $20 - 10 14 6 5 $12 -20 6 15.4 $8 6. Given the demand function Q= 17 - 02p, 6.1. (5 points) Find the inverse demand function. 0. 2P = 17- Q P = 85- JQ 6.2. (5 points) Find the marginal revenue (MR) function. TR = P. Q =(85 - 50) . Q = 850- 5Q2 MR = 85 - 10Q 85- 6.3. (5 points) At what output is MR=0? 85 -10 0 = 0 Q-8.5 6.4. (5 points) At what output is total revenue (TR) maximized? 6.5. (5 points) Determine the own price elasticity of demand at the output level where total revenue is maximized. 7. (10 points) Do you expect the demand for Kellogg's Corn Flakes to be more or less elastic than the demand for breakfast cereals? Explain. 8. (10 points) Is the following statement correct? Explain. "The demand for bicycles is more elastic than the demand for cars because a $50 increase in the price of bicycles affects the number of bicycles sold more than a $50 increase in the price of cars affects the number of cars sold"