Question
Suppose that you have been hired as an economist by OPEC and given the following schedule...
- Suppose that you have been hired as an economist by OPEC and given the following schedule showing the world demand for oil: Your advice is needed on the following
|
Price($/barrel) |
Quantity demanded (millions of barrels/day) |
|
10 |
60 |
|
20 |
50 |
|
30 |
40 |
|
40 |
30 |
|
50 |
20 |
questions:
- What is the elasticity of demand that maximizes total revenue?
- Over what range of prices is the demand for oil inelastic?
Homework Answers
Answer #1
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