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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Fundamentals Of Investments Valuation And Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
10th Edition
9781266824012
