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Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale In the Edmonton area. The graph below shows Aruna's demand curve.
Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale In the Edmonton area. The graph below shows Aruna's demand curve. O Price ($) 40 36 32 28 24 20 15 12 4 8 12 16 20 24 28 32 36 40 Quantity per period a. If the firm wishes to maximize Its total revenue, at what price should it sell its pots? [ What Is its total revenue? $ [ b. Suppose that the firm were to Increase its price by $4 from the price In (a). What will be the change In Its total revenue? Give your answer as an absolute number. [ What Is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places. c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change In its total revenue? Give your answer as an absolute number. [ What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places
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