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Given a demand curve for blueberries: Qd = 5,000 – 2,000P, graph the demand curve making...

Given a demand curve for blueberries: Qd = 5,000 – 2,000P, graph the demand curve making sure to label the horizontal axis in 1,000 unit increments (1K, 2K, 3K, etc.) Calculate the total revenue (TR) for each of the 1,000 unit increments on your x-axis and plot a TR curve directly below your demand curve so that the horizontal axes match up. This is called stacking the graphs and is a common technique in economics. Using the midpoint formula (arc elasticity), calculate the price elasticity of demand between each quantity interval on your demand curve (example from 0 to 1,000 units, then from 1,000 to 2,000 units and so on.) Show your calculations. On both of your graphs (demand & TR) provide labels that correspond to type of elasticity you calculated (elastic, unitary elastic or inelastic).

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