C 40 350 000
D 45 320 000
E 50 300 000
F 55 260 000
G 60 230 000
H 65 190 000
a. Compute total expenditure for each row in the table.
b. Plot the demand curve and the total expenditure curve.
c. Compute the price elasticities of demand between points
A and B, B and C, C and D, and so on.
d. Over what range of prices is the demand for video games
elastic? Explain.
e. Over what range of prices is the demand for video games
inelastic? Explain.
13. Suppose the market for frozen orange juice is in equilibrium at a
price of $2.00 per can and a quantity of 4200 cans per month.
Now suppose that at a price of $3.00 per can, quantity demanded
falls to 3000 cans per month and quantity supplied increases to
4500 cans per month.
a. Draw the appropriate diagram for this market.