answer question 4

E V docs.google.com + 88 N Netflix (4) La Rosa de Guadalupe - Co... 3 HealthEquity Login D2L Homework Migration and Latini... X Econ 202 midterm - Google Do... Course Hero Econ 202 midterm Share E File Edit View Insert Format Tools Add-ons Help Last edit was seconds ago 100% Normal text Times New... - 12 + B I U A . G P WEBEXBEEEX Editing 1 2 . 3 . 5 . 1 6 7 . QUESTION 4: (Show all underlying work, otherwise I will take points off.) (12 points) A company faces a DI curve for its product. Price on the DI curve decreases from $4 to $3, quantity demanded increases from 6 to 7 units. A) Calculate the price elasticity of demand on D1. Show your work and choose the answer form below. a) -1.8 b). -0.28 C) - 0.5 d) - 2.8 B) Refer to your answer above. The demand on D1 is: a) Perfectly inelastic c) Perfectly elastic b) Inelastic d) Elastic C) Refer to your answer to the question above. If the price on DI decreases by 10 percent, the quantity demanded by percent, company total revenue a) decreases; 10%; remains the same b) increases; 5%; falls c) falls; 18%; increases d) increases; 2.8%; falls D) Refer to your answer in part b. If the company from above desires to increase the quantity sold in the market and total revenue by 20 percent, how it should adjust its price? G a) decrease price by 20% b) increase price by 20% c) increase price by 40% d) decrease price by 5% +