Price Elasticity of Demand, Total & Marginal Revenue
	Product code: EC7140
	Price of B	$1.00	$1.25	$1.85	$2.80	$3.50	$4.00	$6.50	$8.00	$9.00	$10.00
	Quantity demanded of B (units)	150	140	130	120	110	100	90	80	70	60
	From the data above, determine the following:
	1. Total revenue at each unit of quantity demanded						www.accountingbase.com
	2. Marginal revenue
	3. Given the relationship between total revenue and marginal revenue, how do you determine the point at which total revenue is maximized?
	4. Calculate price elasticity of demand at each price.
	5. Indicate the price range over which price elasticity of demand is (a) elastic (b) inelastic
	6. Given the results of your calculations, which three data (not including your elasticity data) could you use to determine the price range over which price elasticity of demand is elastic, and the price range over which price elasticity of demand is inelastic?
	Product code: EC7146
	Governments will often increase the tax on certain products to generate additional tax revenue. From the perspective of price elasticity, what products should be targeted by the government to ensure an increase in tax revenue?
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	Product code: EC7147
	Assume that a 25% increase in the price of Nulex (a normal good) leads to a 15% increase in the demand for Telac (a normal good), what is the cross elasticity of demand between Nulex and Telac? Are these goods substitutes, complements or are they unrelated?
	Product code: EC7148
	The cross elasticity of demand for Jeplax and Clibex is +1.05 and for Jolex and Lexon is -2.15. What's the relationship between Jeplax & Clibex? What's the relationship between Jolex and Lexon?
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