October 5, 2020
###### managerial econ A firm produces digital watches on a single production line serviced during one daily shift.
October 5, 2020

Question:

Hi, I was having a hard time with this problem. Please help. This problem has 4 parts to it.

#### How many pages is this assigment?

1 – The graph (I attached the graph with my answers but do not know if it is correct)

2-According to the midpoint method, the price elasticity of demand between points A and B on the initial graph is approximately

A.   0.1      B.   0.69        C.   1.44        D.   27

3-Suppose the price of bippitybops is currently \$20 per bippitybop, shown as point B on the initial graph. Because the price elasticity of demand between points A and B is (elastic, inelastic, or unit elastic), a \$5-per-bippitybop increase in price will lead to (a decrease, an increase, or no change).

4- In general, in order for a price decrease to cause a decrease in total revenue, demand must be (elastic, inelastic, or unit elastic).

Thank you!

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