Calculate point price elasticity of demand

Reference no: EM13279991

A firm's estimated demand curve is given by the following equation: Q = 2840 -20P

a.) Based on the estimated demand curve, write the equations for:
i. Total Revenue
ii. Average revenue
iii. Marginal revenue

b.) Calculate point price elasticity of demand when Q=1600. Is the demand elastic or inelastic at this quantity? How do you know?

c.) What will be the maximum total revenue the firm can obtain? (Give an exact dollar amount and explain how you determine it.)

Reference no: EM13279991

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