Question

Microeconomics

Using the total Revenue test described beginning on page 123, determine whether the following goods are elastic, inelastic or unit elastic:

1.  Price rises from 8 to 9 and quantity falls from 25 to 24.

2.  Price falls from 6 to 4 and quantity rises from 10 to 21.

3.  Price falls from 4 to 2 and quantity rises from 2000 to 4000.

4.  Price rises  from 15 to 16 and quantity falls from 340 to 300.

Answer 1