Task: Demand Schedule for Barbeque Dinners
|
Price
|
Quantity Demanded
|
|
Total Revenue
|
Elasticity Coefficient
|
Elastic or Inelastic
|
|
$4
|
100
|
|
__________
|
XXXX
|
XXXX
|
|
6
|
80
|
|
__________
|
__________
|
__________
|
|
8
|
60
|
|
__________
|
__________
|
__________
|
|
10
|
40
|
|
__________
|
__________
|
__________
|
|
12
|
20
|
|
__________
|
__________
|
__________
|
|
14
|
1
|
|
__________
|
__________
|
__________
|
Question 1: Calculate the total revenue for each level of demand.
Question 2: Using the midpoints formula presented in the text, calculate the elasticity coefficient for each price level, starting with the coefficient for the $4 to $6 level. For each coefficient, indicate what type of elasticity is indicated, elastic demand, inelastic demand, or unitary demand.
Question 3: Define elastic, inelastic, and unitary elasticity means. How are these related to total revenue?
Question 4: Explain how the elasticity changes as price increases. Why is this happening?