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Suppose you observe the following demand curve for a product: 200 180 160 - 120 Price (per unit) 100 - Demand 20 0 20 40
Suppose you observe the following demand curve for a product: 200 180 160 - 120 Price (per unit) 100 - Demand 20 0 20 40 60 80 100 120 140 160 Quantity Demanded (per period) 14. The slope of the above demand curve is 15-18. Fill in the "price elasticity of demand" column by calculating elasticity at each of the prices given in column one. Quantity demanded Price elasticity Price per unit per period of demand (Ep) $180 20 120 80 100 100 40 160 19. As price falls from $180 to $120: A. Demand gets less elastic. B. Demand gets more elastic. 20. According to the above demand curve, at what price will total revenues be the highest? A. at price=$180. B. at price=$120. C. at price=$100. D. at price=$40
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