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In Mt. Pleasant, the consumption of green tea seems to be related to political party membership. The demand for kilograms of tea per month by
In Mt. Pleasant, the consumption of green tea seems to be related to political party membership. The demand for kilograms of tea per month by party affiliation is shown in the table below. A single firm supplies green tea in Mt. Pleasant. Round your answers to 2 decimal places. Kilogram of Tea Liberals Liberals Total Conservatives Conservatives Total Revenue ALL 3 Parties Price Quantity Revenue Quantity NDP Quantity NDP Total Revenue Total Revenue $6.9 4 $ 7 $ 9 $ $ 5.70 5 8 10 5.10 6 9 11 4.50 7 10 12 3.90 8 3.30 9 11 12 13 14 a) Complete the table above. b) What single price should the firm charge everyone if it wants to maximize its total sales revenue and what will be its total revenue? Round your answers to 2 decimal places. Price: $ Total revenue: 5 c) Suppose that the government of Mt. Pleasant allows the firm to price-discriminate on the basis of political affiliation. If the firm wishes to maximize its total sales revenue, how much should it charge each group and what will be its total revenue? Round your answers to 2 decimal places.. Liberal price: $1 Conservative price: $ NDP price: $1 NDP price: $ Total revenue: d) What is the price elasticity of demand for these three groups between the prices of $6.30 and $5.70? Round your answers to 2 decimal places. Liberal: Conservative price: | NDP: e) What is the relationship between elasticity and the prices charged? The greater the elasticity, the (Click to select) the price charged
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