a. On the demand curve graph, place the end points of the demand curve such that at a quantity of 2 the price is $8 per unit and
at a quantity of 16, the price of $1 per unit.
b. Use the information from the demand curve to plot a total revenue curve for a firm facing the plotted demand curve.
a
Demand Curve
Total Revenue Curve
12
60
11
56
52
10
48
ܕ
9
44
40
8
7
Price (5)
36
32
28
6
Total Revenue ($)
5
24
4
20
16
3
12
TR
2
Demand
$
8
1
4
0
0 1 2
0
0 1
3
4
5
2 3
4
6 7 8 9 10 11 12 13 14 15 16
Quantity
5 6 7 8 9 10 11 12 13 14 15 16
Quantity