Mod4 bv3
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Mod4 bv3

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Mod4 bv3 Document Transcript

  • 1. Module 4B POINT AND ARC ELASTICITY OBJECTIVE: This program calculates both point and arc elasticities of demand. INPUTS (will appear in blue): 1) Up to eleven prices may be entered in cells A24 through A34 in descending order. 2) The demand curve is of the form q=a-bp. Values for coefficients a and b should be entered in cells H24 and H26, respectively. GRAPH: Graphs of the demand (average revenue) and marginal revenue curves can be viewed by pressing GRAPH (located at the bottom of the screen). DEMAND ELASTICITY Sample data have been entered as an example. DEMAND ELASTICITY TOTAL PRICE QUAN. ARC POINT REV. MAR. REV. Coef. 18.00 0 0 a 18 17.00 1 -35.00 -17.00 17 17.00 16.00 2 -11.00 -8.00 32 15.00 b 1 15.00 3 -6.20 -5.00 45 13.00 14.00 4 -4.14 -3.50 56 11.00 13.00 5 -3.00 -2.60 65 9.00 12.00 6 -2.27 -2.00 72 7.00 11.00 7 -1.77 -1.57 77 5.00 10.00 8 -1.40 -1.25 80 3.00 9.00 9 -1.12 -1.00 81 1.00 8.00 10 -0.89 -0.80 80 -1.00
  • 2. Average Revenue and Marginal Revenue 20.00 15.00 10.00 DOLLARS/UNIT 5.00 0.00 -5.00 0 1 2 3 4 5 6 7 8 9 10 QUANTITY Column A Column F