Refer to the demand schedule below: Price ($) Quantity demanded 80 0 70 50 60 100 50 150 40 200 30 250 20 300 10 350 0 400 a. Suppose the price increases from $10 to $20. Demand is (Click to select) and total revenue (Click to select) . b. Suppose the price increases from $30 to $40. Demand is (Click to select) and total revenue (Click to select) . c. Suppose the price increases from $50 to $60. Demand is (Click to select) and total revenue (Click to select) .

a. inelastic

increases

b. inelastic

increases

c. elastic

decreases

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. An increase in price would lead to decrease in total revenue

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one. An increase in price would increase total revenue

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

Elasticity when price increases from $10 to $20 :  -0.143 / 1 = -0.143

Percentage change in quantity demanded = (300 / 350) - 1 = -0.143

Percentage change in price = (20 /10) - 1 = 1

Demand is inelastic

Elasticity when price increases from $30 to $40 : -0.2 / 0.33 = 0.6

Percentage change in quantity demanded = (200 / 250) - 1 = -0.2

Percentage change in price = (40 /30) - 1 = 0.33

Demand is inelastic

Elasticity when price increases from $50 to $60 : -0.33 / 0.2 = 1.65

Percentage change in quantity demanded = (100 / 150) - 1 = -0.33

Percentage change in price = (60 /50) - 1 = 0.2

Demand is elastic

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o