Question

6. Fill in the total revenue column for each demand schedule then determine if each is elastic, inelastic, or unitary elastic.

Answer 1

First demand Schedule:

15 x 5 = 75

10 x 10 = 100

5 x 25 = 125

The demand is elastic

Second demand schedule

15 x 5 = 75

10 x 7 = 70

5 x 10 = 50

The demand is inelastic

Third demand schedule:

15 x 6 = 90

10 x 9 = 90

5 x 18 = 90

The demand is unitary