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ECON1110_HW3

# ECON1110_HW3 - Introductory Microeconomics ECON 1110...

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Introductory Microeconomics – ECON 1110 Homework Assignment #3 This homework assignment is due at the start of class on Tuesday, Oct 7. You are permitted to work in small groups, but you must submit your individual answers. Please be neat, or else you may not receive full credit. On any graphs you must correctly label all axes with the appropriate units of measure. Note that unless I present information to the contrary, you can assume that the demand curve is downward sloping and the supply curve is upward sloping. 1. The following table presents the marginal value (MV) for each unit of vaccine. (20 points) Unit MV 0 20 1 18 2 16 3 14 4 12 5 10 6 8 7 6 8 4 9 2 10 0 a. Graph the demand curve. b. Calculate the price elasticity of demand as the price rises in \$2 increments from 0 to \$20. Indicate on the graph the inelastic and elastic region of the demand curve. c. Calculate the total revenue at each price. Does total revenue increase when prices increase in the inelastic region, and decrease in the elastic region?

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ECON1110_HW3 - Introductory Microeconomics ECON 1110...

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