• Like
Mod4 bv3
Upcoming SlideShare
Loading in...5
×
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
257
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

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