Calculate total-revenue data from the demand schedule in review question 1. Graph total revenue below your demand curve. Generalize about the relationship between price elasticity and total revenue.
What are the major determinants of price elasticity of demand? Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic: (a) bottled water; (b) toothpaste; (c) Crest toothpaste; (d) ketchup; (e) diamond bracelets; (f) Microsoft’s Windows operating system.
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