Part I

Q = 1500 -200 P

Use the above demand equation to set up the following in an Excel spreadsheet:

Column 1 contains price (P) starting at $.50 with increments of $.50 until quantity is zero.

Column 2 contains quantity demanded (Q) at each price contained in column 1.

Column 3 contains total revenue (TR = P x Q)

Column 4 contains marginal revenue (MR). (MR = Change in TR / Change in Quantity = (TR1 - TR2) / ( Q1 - Q2)

Column 5 contains arc elasticity coefficients for each P listed in column 1. Use the mid-points formula.

Column 6 contains point elasticity coefficients for each P listed in column 1. Use the point elasticity formula appropriate for an equation.

Be sure to label each column, center the labels (both horizontally & vertically) and wrap the text (Format, Alignment). Add borders (Format, Borders). Use the currency display format where appropriate. Always use commas with numbers. Round to 2 decimal places.

Save your spreadsheet, and e-mail it to me as an attachment before 2 p. m., Thursday, 3/5/98.