Microeconomics

PED Option 1 The following graph shows the market for widgets in a local hardware store. Widgets $15- $14- $13- $12- $11 - Price $1 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Quantity (a) Identify whether the price of widgets from $8 to $7 is elastic, unit elastic, or inelastic. Explain.(a) Identify whether the price of widgets from $8 to $7 is elastic, unit elastic, or inelastic. Explain. (b) What is the price of widgets that maximizes the hardware store's revenue? Explain. (c) The price of widgets is $9. If the hardware store wants to increase its revenue, how should it change the price? Explain. (d) Using the midpoint formula, calculate the price elasticity of demand for widgets when price increases from $7 to $8. Identify the coefficient as elastic, unit elastic, or inelastic. (e) Using the midpoint formula, calculate the price elasticity of demand for widgets when price decreases from $6 to $5. Identify the coefficient as elastic, unit elastic, or inelastic. (f) Based on the scenario in part (9), how does the decrease in price affect the hardware store's revenue