a) draw the demand curveb) Calc e when P= $200, P= $100, and P= $0c) carefully draw the total...

Question

a) draw the demand curveb) Calc e when P= $200, P= $100, and P= $0c) carefully draw the total expenditure/revenue curved) what price maximizes the revenue received by the seller?e) at the price found in (d), what is the value of the total expenditure?f) what is e at this revenue maximizing price?

Robert · Accepted Answer

Qd=100-P/2 
a) draw the demand curve 
Answer: 
Demand curve:
b) Calculate e when P= $200, P= $100, and P= $0 
Answer: 
Elasticity of demand = (dQ/dP)*(P/Q) 
From demand function, (dQ/dP) = -0.5 
So expression for elasticity of demand (e) = (-0.5)*[P/(100-0.5P)] 
Elasticity (at P = 200) = (-0.5)*(200/(100-0.

a) draw the demand curveb) Calc e when P= $200, P= $100, and P= $0c) carefully draw the total expenditure/revenue curved) what price maximizes the revenue received by the seller?e) at the price found...

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