Question:
Elasticity and marginal revenue
Here is some data on the demand for marshmallows
price quantity
$10 100
8 300
6 700
4 1300
2 2200
Is demand elastic or inelastic in the $ 4 - $6 price range? how do you k now?
If the table represents the demand faced by a monopoly firm then what is that firms marginal revenues as it increases output from 100 units to 300 units.