"Look at the demand curve given in Figure 2-1 of the preceding chapter. Make a third column in the table that gives revenue for each price-quantity combination shown. Draw a set of axes on a piece of graph paper. Label the horizontal axis as in Figure 2-1, and label the vertical axis from $0 to $5 billion of revenue in increments of $1 billion. Graph the relationship between quantity and revenue using the column you added to the table. Discuss the relationship of your revenue graph to the demand curve, keeping in mind what you know about elasticity and revenue and about variation in elasticity along the demand curve."

FIGURE 2-1 A Demand Curve for Chicken (a) (b) Price Quantity of Chicken of Chicken Demanded (billions $5.00 dollars per pound) of pounds per year) 2 billion pounds of $4.00 chicken purchased $3.50 0.5 at $2.00 per pound $3.00 1.0 $3.00 Price of Chicken (dollars per pound) Demand curve $2.50 1.5 $2.00) A 3 billion pounds of A $2.00 2.0 chicken purchased $1.00 at $1.00 per pound $1.50 2.5 B B $1.00 3.0 1 2 3 4 5 $0.50 3.5 Quantity of Chicken (billions of pounds per year)