Question

Quantity Total            Marginal

                              Demanded           Price          revenue             revenue  

                                       1                    $325        $______

                                       2                      300           ______            $______

                                       3                      275           ______              ______

                                       4                      250           ______              ______

                                       5                      225           ______              ______

                                       6                      200           ______              ______

                                       7                      175           ______              ______

                                       8                      150           ______              ______

                                       9                      125           ______              ______

                                      10                     100           ______              ______

                                      11                       75           ______              ______

                                      12                       50           ______              ______

                                      13                       25           ______              ______

                                      14                         0           ______              ______

            (a) What do the data in the table indicate about the relationship between total revenue and marginal revenue? Explain.

(b) What do the data in the table indicate about the elasticity of demand?

Answer 1