O & ng.cengage.com/static | | Q Search 6774 130% … . MINDTAP al Exam Due on Dec

Question

O & ng.cengage.com/static | | Q Search 6774 130% … . MINDTAP al Exam Due on Dec 8 at 11:59 PM EST Roxanne Woodbury ( 2 4 610 12 14 16 18 30 Qt Refer to Figure 5-11. Suppose this demand curve is a straight, downward-sloping line all the way from the horizontal intercept to the vertical intercept. We choose two prices, Pi and P2, and the corresponding quantities demanded, 01 and O2, for the purpose of calculating the price elasticity of demand. Also P2> Pi. In which of the following cases could we possibly find that (i) demand is elastic and (ii) a decrease in price from Pi to P causes an decrease in total revenue? O . P1 520. Doe

Explanation / Answer

I think it should be between 10 and 20. Since because at the middle portion of DD curve our demand is unit elastic and the movement of TE is on the flatter portion of DD curve. SO, our DD cuve should be realtively elastic in our analysis.

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