Question 2 The president of the Micro Brewing Corporation asks you as the compan

Question 2
The president of the Micro Brewing Corporation asks you as the company economist to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50 the quantity demanded will decrease from 2200 units to 1800 units a month. Should the Micro Brewing Corporation raise its price? Explain fully the economic basis for this recommendation to the president.Question 3
A marketing firm has done a study of market demand for DVDs of three different movies. Calculate the total revenue for each movie in columns 3 5 and 7.(1)
Price (2)
QA (3)
(4)
QB (5)
(6)
QC (7)$10 100 $_____ 100 $_____ 100 $_____
9 111 _____ 130 _____ 110 _____
8 125 _____ 170 _____ 120 _____
7 143 _____ 220 _____ 130 _____
6 167 _____ 280 _____ 140 _____
5 200 _____ 350 _____ 150 _____
Without calculating the price elasticity of demand indicate whether demand for each movie is elastic inelastic or unit-elastic. For which movie would a reduction in price produce the greatest increase in revenue? Explain your answers fully.