An economist has estimated the demand equation of a certain product as Q-100-SP where P is the price unit and Q is the q

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An Economist Has Estimated The Demand Equation Of A Certain Product As Q 100 Sp Where P Is The Price Unit And Q Is The Q 1 (19.9 KiB) Viewed 15 times

An economist has estimated the demand equation of a certain product as Q-100-SP where P is the price unit and Q is the quantity demanded (in thousands) per year. 1.Calculate and interpret the own price elasticity of demand of the product when its price goes from $10 to $15 per unit. 2. Calculate the own price elasticity when price is P $30. Is demand elastic, unit-elastic or inelastic at price P. $30? Will you raise or lower price to increase revenue? 3. Determine the total consumer value when price is P $30. 4. Suppose the inverse demand function for a monopolist's product is given by P 270-2.5Q and the total cost function is TC-500+300+3.502 so that its marginal cost is MC-30-70 4.a Determine the marginal revenue as a function of Q 4.b Determine the profit maximizing price and quantity 4.c. Determine the maximum profits