Question
a. Notice the following graph:(Check out the attachment)(i) When the price declines from Pa to Pb, which demand curve the most elastic? Why? Which demand
a. Notice the following graph:(Check out the attachment)(i) When the price declines from Pa to Pb, which demand curve the most elastic? Why? Which demand curve that have the smallest slope? Why? Explain the differences between elasticity and slope on a linear demand curve.(ii) Are the price elasticities of demand along the curves above have the same values? Explain! b. Mr. Ali has a car workshop "X Name" located in Cloud. One of the services provided is car wash. In the last two months, Mr. Pak Ali has decided to raise the price of car washing from Rp 60.000,00 to Rp 75.000,00. The strategy has increased Mr. Ali's revenue from car wash from Rp 12.000.000,00 to Rp 13.500.000,00 per month.(i) Calculate the price elasticity of demand for car wash services of Mr. Ali. Explain is the price elasticity of demand characterized by elastic, inelastic, or unitary.(ii) Explain theoretically the relation between demand elasticity and total revenue of producer. c. In the last month, the seller of goods "Y" collect a revenue of $100 from a selling of 50 units goods Y. In the month, Pada bulan ini, the sellers raise the price of goods "Y" and collect a revenue of $120 from selling 40 units of goods Y. At the same time, the price of goods "X" unchanges, but the selling of goods "X" experiences an increase from 20 units to 40 units. Calculate the cross elasticity between X and Y and what is your conclusion? Explain!
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