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The Dolan Corporation, a maker of small engines, determines that in 2012 the demand curve for its product is P = 2,000 - 50Q where P is the price (in...
The Dolan Corporation, a maker of small engines, determines that in 2012 the
demand curve for its product is
P = 2,000 - 50Q
where P is the price (in dollars) of an engine and Q is the number of engines
sold per month.
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CHAPTER 2: DEMAND THEORY
To sell 20 engines per month, what price would Dolan have to charge?
If managers set a price of $500, how many engines will Dolan sell per month?
What is the price elasticity of demand if price equals $500?
At what price, if any, will the demand for Dolan's engines be of unitary
elasticity?
