apple + orange = apple + orange
cannot be simplified
Just want to give you the heads up: This is the homeport of Austrian Economics, which praxeologically, a prioristically disproves these times of economics (ie- through logic and statements that cannot be disproven)
People here tend to reject any of these types of graphs/tables/equations that assume perfect knowledge of the market, although some of us received this training in schooling, like I did for the AP Econ tests
Complete the following table. Use the mid-point formula to calculate the coefficients. In column 4, determine whether demand is elastic, inelastic, or unit elastic based on the coefficient calculated.
|
PRICE(P) |
QUANTITY DEMANDED(QD) |
ELASTICITY COEFFICIENT |
ELASTIC/INELASTIC/UNIT ELASTIC? |
TOTAL REVENUE |
|
$8 |
2 |
n/a |
n/a |
16 (PxQD) |
|
7 |
3 |
{ [(delta)QD]/[(average)QD]}/{[delta)P]/[(average)P]}=3 |
Elastic (E>1-think horizontal more than vertical) |
You fill it out- just substitute in the same row |
|
6 |
4 |
You fill it out- just substitute in the same row |
||
|
5 |
5 |
You fill it out- just substitute in the same row |
||
|
4 |
6 |
You fill it out- just substitute in the same row |
||
|
3 |
7 |
You fill it out- just substitute in the same row |
||
|
2 |
8 |
For elastic=1, unit- 45deg angle;
Inelastic, <1- more vertical than horizontal
Elasiticity is really the [(delta)%QD]/[(delta)%P}
I believe your math is incorrect… based on the figures you have for elasticity, the type is correct- and the TR is correct, but where you have 2.33, it is (delta)QD=4-3, average QD= (4+3)/2, they do with the ones just above- I calculated 1.8someodd for that instead of 2.33
The only one I see the math being wrong is the one you labled unit elastic- (1/5.5)/(1/4.5)=/=1