Economics Scattergraphs
1. Consider the following hypothetical demand schedule for "Tammy Fay" brand Mascara:
|
Price per pound: |
$0 |
$6 |
$12 |
$18 |
$24 |
$30 |
$36 |
|
Quantity demanded: |
600 lbs |
500 lbs |
400 lbs |
300 lbs |
200 lbs |
100 lbs |
0 lbs |
Based on this demand schedule, use excel to set up a graph of the demand curve and also the corresponding total revenue curve (use two separate graphs for this, in both cases with quantities on the horizontal axis).
In this same excel sheet, also calculate the price elasticity of demand for each price range using the midpoints formula (make sure to use excel for your calculations, so that I can take a look at those).
2. Suppose that the demand for Cod Liver Oil (CLO) can be written QD =5000-2P (so, the inverse demand curve for CLO is P=2500-0.5QD), where P is the price per ton (in dollars) of CLO and QD is the quantity demanded (in tons) in a period. Based on this information, create an excel sheet which:
1. Sets up scatterplots of (i) the demand curve and (ii) the corresponding total revenue curve for this market (in two separate diagrams).
2. Calculate price elasticity of demand using the point elasticity formula at the following amounts of CLO along this demand curve: QD=4000, QD =2500, QD =1000. Also, calculate totals revenue from sales in this market at each of these quantities: QD=4000, QD =2500, QD =1000.