b). (7 points) On the following page plot the demand curve for the electricity in Graph 1 and the total revenue curve in Graph 2. (2 points for D curve; 2 points for TR curve; 1 each for the 3 ‘highlights’ for a total of 5 points)
· Highlight with blue the elastic section of the demand curve and the corresponding section of the total revenue curve.
· Highlight with red the unitary elastic section of the demand curve and the corresponding section of the total revenue curve.
· Highlight with green the inelastic section of the demand curve and the corresponding section of the total revenue curve.
Graph 1
Graph 2
c). (8 points) Complete the following summary table: (1 off for each incorrect answer up to 6)
