Use the graphs below to answer the following questions.
a. Determine equilibrium price and quantity for each graph.
b. Given demand and supply, what would total revenue be for each graph?
c. Assume that supply shifts to the left on both graphs by 100, raising price. Given the new equilibrium price and equilibrium quantity, what would total revenue be for each graph?
d. What do your answers to part c tell you about the relationship between elasticity of demand and total revenue?
Definitions:
Adam Smith
An 18th-century Scottish economist and philosopher, best known as the author of "The Wealth of Nations" and as the father of modern economics.
Amerigo Vespucci
An Italian merchant, explorer, and navigator from the Republic of Florence, who is best known for his namesake of the continents of North and South America.
Zheng He
A Chinese mariner, explorer, diplomat, and fleet admiral who commanded expeditionary voyages to Southeast Asia, the Middle East, and East Africa from 1405 to 1433.
Borderland
A region near or along a border that often embodies a blend of cultures, identities, and political tensions.
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