2. (12 points) Suppose the demand for a product is given by Q = 200 – 5P....

Question

Question

2. (12 points) Suppose the demand for a product is given by Q = 200 – 5P.

a) Calculate the Price Elasticity of Demand when the price of the good is P = 8?

b) What is the Marginal Revenue of the firm when P = $8?

c) If the firm wants to increase their total revenue, should they increase or decrease the Price?

d) What price should the firm charge if it wants to maximize Total Revenue?

Answer 1

Answer #1

40-1. (100) z 2 0 5 dp 5.18 160 0.25 4) ナー&s 200-5p 5p-200: 2 t 8 hauld inaor he le inuash

Answer 2

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