The above figure represents the demand and marginal revenue curves for Sue's Seafood, a seller of fresh fish
a. Over what range of output is demand elastic?
b. Over what range of output is demand inelastic?
c. What price maximizes total revenue?
d. What is the price elasticity of demand at the revenue maximizing price?
a. Demand is elastic from 0 to 20 pounds of fish.
b. Demand is inelastic from 20 to 40 pounds of fish.
c. Total revenue is maximized when the price is $8 a pound.
d. Total revenue is maximized when demand is unit elastic.
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What will be an ideal response?
Due to the implementation of the Troubled Asset Relief Program and the American Recovery and Reinvestment Act, the Federal budget deficit _____
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