Unformatted text preview: demand? Derive the relevant equation and explain what this equation implies for the relationship between the size of the price elasticity of demand and revenue. 2). Derive and graph the marginal revenue (MR) curve for a linear demand curve. 3). Define the income elasticity of demand, give its formula and explain the type of information it might give us for the different types of goods. Can you prove that income elasticity of demand values tend to cluster around 1? 4). Graph and describe the Laffer curve. What type of information does it give us?...
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 Spring '08
 Hansen
 Economics, Microeconomics, Income Elasticity, Price Elasticity, Supply And Demand, Intermediate Microeconomic Theory, University of Wisconsin Department of Economics Economics

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