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d) #5. The following table represents the schedule of demand for Shake Shack mushroom burgers in University City: Pce($) $223;ch Ed Exp-Lontjilture 5 350 5

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d) #5. The following table represents the schedule of demand for Shake Shack mushroom burgers in University City: Pce($) $223;ch Ed Exp-Lontjilture 5 350 5 450 4 550 3 650 2 750 Column 3 shows the Elasticity of Demand for Shake Shack mushroom burgers. Fill in the column by calculating the elasticity coefficient for each price change. Fill in Column 4 by computing the Total Expenditure on Shake Shack mushroom burgers in University City (same as the total revenue of the Shake Shack from selling those burgers). Look at column 3 and column 4. Are your numbers consistent with the rule that a price decrease will increase total expenditure (revenue) only when demand is elastic? Suppose that because of a fall in the price of Shake Shack mushroom burgers the demand for the burgers is twice as big as before (at any price). Use the new demand schedule and find the Elasticity of Demand for a price change from $6 to $5. Is it the same as before? Why

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