Question
3 - From the following data about the demand for dishwashers, calculate the elasticity of demand from point A to B, from point C to
3 - From the following data about the demand for dishwashers, calculate the elasticity of demand from point A to B, from point C to D, and from point E to point F. Classify the elasticity as elastic, inelastic, or unitary elastic. Also, calculate the total revenue of each point. What happens to total revenue as you approach unitary elasticity? If cost were not an issue what price would you choose for your selling price?
| Point | Price In Dollars | Quantity Demanded | Total Revenue | Elasticity |
| A | 180 | 5600 | ||
| B | 200 | 5200 | ||
| C | 220 | 4800 | $1,056,000 | |
| D | 240 | 4400 | ||
| E | 260 | 4000 | -1.42 | |
| F | 280 | 3600 |
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Management And Organisational Behaviour
Authors: Laurie Mullins
7th Edition
9780273688761
