Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 13

Suppose Bobby, the owner-manager of Bobby's Red Hot BBQ restaurant, projects the following demand for his Baby Back Rib platter:
a. Calculate the price elasticity of demand between $9 and $11.
b. Is the price elasticity of demand between $9 and $11 elastic, unit elastic, or inelastic?
c. Will Bobby's total revenue rise if he increases the price from $9 to $11?
d. Calculate the price elasticity of demand between $11 and $13.
e. Is the price elasticity of demand between $11 and $13 elastic, unit elastic, or inelastic?
f. Will Bobby's total revenue rise if he increases the price from $11 to $13?
*Asterisk denotes questions for which answers are given in Appendix B.