Good day to friends in this forum, I have a little question which I hope to receive some help from. :)
A recent natural disaster damaged the production facilities of a chip-producing company, reducing the amount of chips they can produce.
Assuming that the Total Revenue (TR) rose due to above, what must be true for this to happen in terms of elasticity? Show the change in TR with a diagram, showing the price and quantity effect of the natural disaster on this company's total revenue.
I have wrote my version of the answer(see attachment) but I have not constructed the diagram because I am not really sure how to go about it. What other information is required for tackling this question? Will anybody share their insights? :)
Thanks in advance for your help!!