Quiz- PSet2-2010

Quiz- PSet2-2010 - ARE 100A Richard Howitt Name. Quiz on...

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ARE 100A Quiz on Problem Set II January 22 2010 Richard Howitt Name……………………………. . Section……………………………. . 1. Red Lobster restaurant currently sells 200 of shrimp plate orders per week when the shrimp plate is priced $8.50. (a ) The first consultant they hire estimates the demand for shrimp dishes as: Q = 440 - 28.23 P (i) Calculate the elasticity of demand at the current market price and quantity (ii) Calculate the effect on total revenue from shrimp plate sales if the price is reduced to $7.50 (b) A second consultant estimates the demand for shrimp plates as: 0.8 1108 QP = (i)
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Quiz- PSet2-2010 - ARE 100A Richard Howitt Name. Quiz on...

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