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# Ch6 - Ch6 Student Use the figure below which shows a linear...

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Ch6 Student: ___________________________________________________________________________ Use the figure below, which shows a linear demand curve and the associated total revenue curve, to answer the next 5 questions. 1. The price for which 100 units can be sold is \$_____. A. 10 B. 15 C. 25 D. 45 E. 50 2. The price at which total revenue is maximized is \$_____. 3. The marginal revenue of the 100th unit is \$_____. 4. The marginal revenue of the 700 th unit is \$_____ and demand is __________ at this point.

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5. The maximum possible total revenue is \$_________. A. 10,500 B. 11,000 C. 11,500 D. 12,000 E. 12,500 6. The Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues. The Interior Department must believe that 7. Which of the following will NOT affect the elasticity of demand for a product? 8. If the demand for umbrellas is price inelastic, The next 9 questions refer to the following figure:
9. In the figure above, what is the point price elasticity of demand when price is \$60? A. -0.50 B. -0.75 C. -1.00 D. -1.60 E. -2.00 10. In the figure above, what is the point price elasticity of demand when price is \$80? 11. What is the interval elasticity of demand over the price range \$60 to \$80? 12. If price INCREASES from \$60 to \$80, an arrow representing the PRICE effect

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Ch6 - Ch6 Student Use the figure below which shows a linear...

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