HW chap 2

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Unformatted text preview: d.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 6/9 1/14/14 Assignme nt Pr int Vie w E s = 1 0 × (1 .3 3 /7 .3 ) E s = 1 . 8 2 . 7. awar d: 16.66 out of 16.66 points Suppose that the U.S. demand for maple syrup, in thousands of gallons per year, is where P is the price per gallon. At what price is the expenditure on maple syrup by U.S. consumers highest? Instructions: Round your answer to 2 decimal places. \$60. 00 . rev is ed jrl 08­09­2011 Worksheet Section: Elasticities of Demand and Supply Suppose that the U.S. demand for maple syrup, in thousands of gallons per year, is where P is the price per gallon. At what price is the expenditure on maple syrup by U.S. consumers highest? Instructions: Round your answer to 2 decimal places. \$ 60.00 ± .03 . rev is ed jrl 08­09­2011 Explanation: Total Expenditure and the Elasticity of Demand The largest total expenditure and maximum revenue occur when price elasticity of demand equals –1. A small increase in price causes total expen...
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## This note was uploaded on 01/14/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.

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