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what to do: provide a script or explanation about the seen information on the picture information/reference : G. AT WHAT PRICE LEVEL THAT THE SELLER'S
what to do: provide a script or explanation about the seen information on the picture
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G. AT WHAT PRICE LEVEL THAT THE SELLER'S TOTAL REVENUE BE MAXIMIZED BASED ON THE NEW DEMAND EQUATION? HOW MUCH IS THE TOTAL REVENUE AT THIS PRICE? E.1: Look for value of Ol and E.2: To solve for coefficient of price QL elasticity of demand Using quantity: Qd-17,000-500P Ep= (Qi-QL/QL) QI=17,000 Ep= (17,000-8,5000/8,5000) QL=Qi/2 Ep= (8,5000/8,5000) QL=17,000/2 QL-8,500 Ep= 1 or 1% E.3: Look for value of Pi and PL E.4: To solve for coefficient of price Qd-17,000 -500P elasticity of demand Using price: Ep= (PL/PI-PL) Pima/b Ep= (17/34-17) Pi=17,000/500 Ep= (17/17) PI=34 PL=PI/2 Ep= 1 or 1% PL=34/2 PL-17Step by Step Solution
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