Homework Soursea Complete the total revenue column from the demand schedule
a. Complete the total revenue column from the demand schedule data given below.
Price
Quantity
Total Revenue
$ 5
1
$
4
2
3
3
2
4
1
5
b. Price and total revenue move in the opposite directions, when the demand is (Click to select)inelasticunit elasticelastic
| Price | Quantity | Total Revenue |
| $ 5 | 1 | $ |
| 4 | 2 | |
| 3 | 3 | |
| 2 | 4 | |
| 1 | 5 |
Solution
Total Revenue = Price x Quantity
(a)
(b)
When demand is elastic, an increase (decrease) in price will decrease (increase) total revenue.
| Price | Quantity | Total Revenue |
| 5 | 1 | 5 |
| 4 | 2 | 8 |
| 3 | 3 | 9 |
| 2 | 4 | 8 |
| 1 | 5 | 5 |
