Very confused on how to figure these out.
Suppose that the following table shows the weekly visits to an amusement park as a function of the daily admission fee charged:
#visits daily fee
200 $50
400 $40
600 $30
800 $20
1000 $10
What is the price elasticity of demand when the daily fee is $20? When the daily fee is $40?
What is the elasticity of demand at the price which maximizes total revenue?
What price maximizes total revenue?
What is the arc price elasticity between the prices of $40 and $20 per day?
1 answer