Consider the following demand schedule for designer shirts:

Price Quantity Demanded

60 1

55 2

50 3

45 4

40 5

35 6

30 7

25 8

20 9

15 10

1)According to the demand schedule, what is the price elasticity of demand based upon a price change from $15 to 20?Is this considered elastic or inelastic?

2)According to the demand schedule, what is the price elasticity of demand based upon a price change from $55 to $60?Is this considered elastic or inelastic?

3)Use your demand schedule and put together total revenue column.At what Price Point(s) is total revenue maximized?

4)Use your demand schedule and put together marginal revenue column.At what production level would this company cease to produce marginal revenue (MR=0)?