Consider the following hypothetical demand schedule for "Tammy Fay" brand Mascara:

Qd = 600 - 16 P

Where Qd represents quantity demanded in pounds and P is the price in dollars.

(a) Based on this demand schedule, set up a graph (using excel) of the demand curve and the corresponding total revenue curve (with quantity on the horizontal axis).

(b) Calculate the price elasticity (using the point elasticity formula) of demand at quantities demanded of 500, 400, 300, 200 and 100.

Qd=500-2P	If Q=0 then P=250
2P=500-Qd
P=250-0.5Qd	If P=0 then Q=500
Q	P	TR=PxQ
500	0	0
450	25	11250
400	50	20000
350	75	26250
300	100	30000
250	125	31250
200	150	30000
150	175	26250
100	200	20000
50	225	11250
0	250	0

Q	P	Elasticity
500	0	0.00
450	25	0.11
400	50	0.25
350	75	0.43
300	100	0.67
250	125	1.00
200	150	1.50
150	175	2.33
100	200	4.00
50	225	9.00
0	250	-
E=|%Q/%P|
E=|(Q/Q)/(P/P)|
		E=-(Q/P)(P/Q)
		(Q/P)=-2
		E=-(-2)(P/Q)