Question: a. Using your answers to 1a, compute the arc elasticity of demand for the market demand curve between the following sets of prices:

Price Range Price Elasticity of Demand

$2 to $4

$4 to $6

$6 to $8

$8 to $10

$10 to $12

$12 to $14

$14 to $15

b. In what range of prices is price elasticity of demand inelastic, unitary elastic, elastic?

c. At what price is revenues maximized? Explain the relationship between this price and the price elasticity of demand.

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