Help w/ finance Q: using table, find total revenue at $4 pri

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brian226

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Price Quantity Total Revenue Marginal Revenue
$4 $100
$3
$2 $600 $0

Use the above information to answer the following questions. (Note: Answer these questions relying on economic theory. Do not use a linear equation, interpolation or extrapolation methods to fill in the table.)

1. What is the total revenue at a price of $4; a price of $3?

2. What is the quantity demanded at the price of $3; a price of $2?

3. What is the marginal revenue between the quantity 100 and the quantity (determined above) corresponding to a price of $3?

4. What is the price elasticity of demand between the prices of $3 and $2?

5. Besides using the formula, what other method can be used to determine price elasticity of demand in #4 above?

6. Do not use the elasticity formula to answer this question - is the price elasticity of demand between the prices $4 and $3 greater or less than what you determined in questions #4 and #5 above? Explain.

7. Use the formula and determine the exact value for the price elasticity of demand between $4 and $3.

Any ideas?
 
brian226 said:
Price Quantity Total Revenue Marginal Revenue
$4 $100
$3
$2 $600 $0

Use the above information to answer the following questions....
Click to expand...

What are your ideas?

Your problem specifically prohibits certain methods.

Start with telling us the definitions of the terms in question - like particular economic theories behind projecting demand, revenue, marginal revenue, etc.
 
I've already solved the total revenue for the price of $4 ($400), as well as the quantity for the price of $2 ($300). I just don't know how to get the quantity or total revenue at the price of $3.

I thought that I could possible try to use the midpoint, but I dont think that it works. The midpoint between 100 and 300 is 200...but this gave me the TR of 600 and an MR of 0. I know that you cant have 2 points both at 0.

I should state, I am not looking for the answers to all the questions. I just need to be able to fill in one of the slots for the $3 either, Q, TR, ot MR.... I can solve all the rest from there. (hopefully)

But I am truely stumped. I have sought help from a friend who was a business major and she is stumped as well. I am a little rusty, I graduated in 05, and I am takig this class to get into a policy grad program. Anything at this point will help.
 
Re: Help with math problem

This is what I have:

Price Quantity Total Revenue Marginal Revenue
$4 $100 $400
$3
$2 300 $600 $0
 
Re: Help with math problem

The main reason (I think) nobody is able to help you is that - as posted your table is not spaced correctly and we cannot decipher it.
 
Subhotosh Khan said:
...as posted your table is not spaced correctly and we cannot decipher it.
Click to expand...
As posted, the original table appears to be meant to be as follows:

Code: 
+-------+----------+---------+----------+
|       |          |  Total  | Marginal |
| Price | Quantity | Revenue | Revenue  |
+-------+----------+---------+----------+
|    $4 |      100 |         |          |
+-------+----------+---------+----------+
|    $3 |          |         |          |
+-------+----------+---------+----------+
|    $2 |          |    $600 |       $0 |
+-------+----------+---------+----------+
Note that the "dollar" sign in the original post would thus appear to indicate a typo: Either the sign does not belong, or the "100" was placed incorrectly.

Eliz.
 
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