Question

Consider the two points that are labeled on the demand curve in the figure below, which may not be drawn to scale:

Use this figure to answer the questions that follow:

1. Using the midpoint formula, calculate the price elasticity of demand along the segment between the two points. Enter the number below. Be sure to include a negative sign if you believe price elasticity of demand should be negative. You can round to two decimal points, if necessary.

2. If you were to calculate the price elasticity of demand again along a segment of the demand curve where the price is less than $3, what would you expect to be true?
-Price elasticity of demand would be more elastic than it was along the segment you already calculated
-Price elasticity of demand would be more inelastic than it was along the segment you already calculated
-Price elasticity of demand would be unitary elastic
-Price elasticity of demand be equal to the value it was along the segment you already calculated

3. Assuming price decreased between the two points in the figure, calculate the change in revenue that occurred because of the price change. Enter the number below. Be sure to include a negative sign if revenue decreased.

Answer 1

Answer: PLS SCROLL BELWO FOR THE ANSWER THX!!!!!!

Explanation:

1. To calculate the price elasticity of demand along the segment between the two points on the demand curve, we can use the midpoint formula. The formula for price elasticity of demand is:

Price Elasticity of Demand = ((Q2 - Q1) / ((Q2 + Q1) / 2)) / ((P2 - P1) / ((P2 + P1) / 2))

Let's label the points on the demand curve as Point A and Point B. We need the quantity and price values at these points to calculate the price elasticity of demand.

2. If we were to calculate the price elasticity of demand along a segment of the demand curve where the price is less than $3, we would expect the price elasticity of demand to be more elastic than it was along the segment we already calculated. This is because when the price is lower, consumers tend to be more responsive to price changes, resulting in a higher elasticity value.

3. Assuming the price decreased between the two points on the demand curve, we can calculate the change in revenue that occurred because of the price change. The formula for revenue is:

Revenue = Price * Quantity

To calculate the change in revenue, we need to find the difference between the revenue at Point A and the revenue at Point B. If the price decreased, we expect the change in revenue to be negative, indicating a decrease in revenue.

Please provide the values for the points on the demand curve (quantity and price) so that I can calculate the price elasticity of demand and the change in revenue accurately