Question

A. Use the midpoint formula to calculate elasticity of demand for the following data values for...

  1. A. Use the midpoint formula to calculate elasticity of demand for the following data values for product A.  Must show work to receive full points.  (Correct work 4 points Correct answer 2 points)

Price

Quantity

$10

200

$12

160

B.  Your goal is to maximize revenue for product A.  After finding the elasticity of demand for product A, would you do anything to the price of product A?  Explain in detail what would you do and why.  (3 points Answer must be in sentences)

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