Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 Quantity Instructions: All dollar responses should be entered as whole numbers. Include a minus (-) sign for all negative answers. a. How much would the firm's revenue change if it lowered price from $12 to $10? Is demand elastic or inelastic in this range? Revenue change: $ Demand is (Click to select) in this range.
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- Initial price: $12 - New price: $10 - From the graph, at $12, the quantity demanded is 2 units. - At $10, the quantity demanded is 3 units. Show more…
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