An economist has estimated the demand equation of a certain product as Q 200-5P 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 200-5P where P is the price unit and Q is the q

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An economist has estimated the demand equation of a certainproduct as Q 200-5P where P is the price unit and Q is the quantitydemanded ( in thousands ) per year
1. Calculate the own-price elasticity of demand of the productwhen its price goes from $30 to $35 per unit
2. Give an interpretation of the value of the own-priceelasticity calculated in question 1.
3. Using the demand equation Q=200-5P, calculate the own-priceelasticity when the price is P=$10. Is demand elastic,unit-elastic, or inelastic at price P=$10? Will you raise or alower price to increase revenue?
4. Using the demand equation Q=200-5P, determine the consumersurplus ( CS ) when the price is $10. What's the total expenditure( TE ) when the price is P=$10?
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