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The following is the utility table for good X. Qty Marginal Utility ( MU) Total Utility ( TU) Price elasticity of demand (assume 1MU =$1)
The following is the utility table for good X.
| Qty | Marginal Utility ( MU) | Total Utility ( TU) | Price elasticity of demand (assume 1MU =$1) |
| 1 | 720 | ||
| 2 | 1370 | ||
| 3 | 1950 | ||
| 4 | 480 | ||
| 5 | 360 | ||
| 6 | 260 | ||
| 7 | 100 |
- Complete the table above. (10 marks)
- Graph and explain the relation relationship between the utility curve and demand (5 marks)
- Graph the demand curve and label 3 points (the highest PED, PED closest to 1 or =1, lowest PED) based on the above table. (3 marks)
- Currently, the product is $360, the company wants to increase total revenue. Explain how maximum revenue can be achieved. (2marks)
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
