ion One (40 marks) il store faces a demand equation for T-shirts given by: Q=180- 1.5P, when er of shirts sold per month

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Ion One 40 Marks Il Store Faces A Demand Equation For T Shirts Given By Q 180 1 5p When Er Of Shirts Sold Per Month 1 (56.55 KiB) Viewed 42 times

ion One (40 marks) il store faces a demand equation for T-shirts given by: Q=180- 1.5P, when er of shirts sold per month and P is the price in dollars. The store currently char irt. a. At this price, determine the number of shirts sold. (1 mark) b. If management were to raise the price to $100, what would be the impact on and on the store's revenue from shirts? (4 marks) c. Compute the point elasticity of demand at P = $80. (2 marks) d. Compute the point elasticity at P=$100. (2 marks) e. At which price is demand more price sensitive? Explain your answer. (1 ma Action: Indicate whether the statement is True or False and give reason(s) for yo brief statement not more than 5 lines. Each correct answer is worth 3 marks. e in options (True or False) renders all explanations for that question null and f. Return to scale is a long run phenomenon where at least an input is fixed. g. All fixed costs are sunk cost and all sunk costs are fixed cost h. Technical efficiency implies Economic efficiency and vice versa i. Under Porter's 5-forces framework, profits are high when both buyers and power are high