meals will increase from 450 to 500 per day Compute the price elasticity of demand between these two points Would you expect total revenue to rise or fall as a result of this second price reduction? Explain Compute total revenue at the three meal prices Do these totals confirm your answers in (b) and (d) above? The text notes that, for any linear demand curve, demand is price elastic in the upper half and price inelastic in the lower half Consider the following demand curves: Figure 5.13 The table gives the prices and quantities corresponding to each of the points shown on the two demand curves Demand curve D1 [Panel (a)] Demand curve D2 [Panel (b)] Price Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Quantity Price Quantity Saylor.org 285