Professor Trueman retiredfrom his position at MCC andnowrunsaChevy dealership in Bad Axe, Michigan.When he advertised the newChevy Malibuat $23,000, he sold two cars per week.He then experimented with a discount, cutting the price to $22,000, which led him to sell three cars per week.A further price cut to $21,000 led sales to rise to four cars.Andthe week he experimented with a price increase, hiking the price to $24,000, he sold only one car.

Part A- Usingdata from a table, plot the results of ProfessorTrueman'spricing experiment to discover his business'sdemand curve

Part B- Usethedemand curvedata from the spreadsheet to bothautomaticallycalculate and plotmarginal revenue(MR)with the following steps

1. Calculatetotal revenue (TR)automatically
2. Calculate marginal revenue (MR)automatically
3. Plot and overlay the marginal revenue curve ontothesamegraph as the demand curve.

Part C-Analyze the demand and marginal revenue curves.Include the following

1. What does theRevenue Testtell you about theprice elasticity of demand?
2. Is the marginal revenue curve upward sloping or downward sloping, and why?
3. Is one curve positioned higher or lower than the other? If so, which one? Would this be a one-time freak occurrence, or would that relationship always exist?Please explain.

Part D- Suppose for simplification purposes, that themarginal cost(MC)andaverage cost(AC)of selling each additional car is equal to $20,000.Add the data to the spreadsheet table.Then, plot and overlay the MC/AC curve over thesamegraph used to plot yourdemand and MRcurves

Part E-Using the graph from Part D, determine how many cars Professor Trueman should sell, and what price he should charge, assuming he has some market power

Part F- Use Excel, andthegeneral formula for profit in your textbook, toautomaticallycalculateprofit at each level ofweeklyoutput(sales).Confirm that your completed table has the following seven columns: Quantity, Price, Total Revenue, Total Cost, Marginal Revenue, Marginal Cost, and Profit

Part G-Determine ifyou think Professor Trueman is makingaccounting profit/lossoreconomic profit/loss.