This is a file upload question. Please hand-write your solut…
Questions
This is а file uplоаd questiоn. Pleаse hand-write yоur solution in a piece of paper, take a picture and upload your file (or send me through Canvas Inbox or at haruko.muratainouye@chaffey.edu) as soon as you submit your exam! Typed answers will not be accepted! Suppose that you sell ice-cream and the demand curve that you face in this market is shown in the graph below: Note that: P1 = $10 P2 = $8 Q1 = 150 Q2 = 200 Now answer the following: Calculate the price elasticity of demand (PED) for points A and B using the midpoint method learned in class. Show your work! Is the demand elastic or inelastic? Justify your answer! Calculate the Total Revenue (TR) for point A and for point B by showing your work. Given this demand curve, what you should do to increase your Total Revenue? Increase or decrease the price of the ice-cream? Explain!