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Problem 1. The table shows the demand for DVD movie rentals to a. Find the price elasticity of demand when the rental price increases from

Problem 1.
The table shows the demand for DVD movie rentals to
a. Find the price elasticity of demand when the rental price increases from $ 3 to $ 5 per DVD.
b. Find the price elasticity of demand when the rental price increases from $ 2 to $ 4 per DVD.

Problem 2.
What happens to total revenue when the price of a chip drops from 400 to 350? What is the price elasticity in that segment?
What happens to total revenue when the price of a chip drops from 300 to 250? What is the price elasticity in that segment?
At what price is total income at its peak?
What happens to total revenue when the price of a chip rises from 300 to 400? What is the price elasticity in that segment?

Problem 1 Price Quantity 0 150 1 125 2 100 3 75 4 50 25 6 0Problem 2. The demand plan for computer chips is Price | Quantity Ep Total income 200 50 250 45 300 40 350 35 400 30

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