Calculate the point price elasticity of demand

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Reference no: EM131007981

KRDY-FM is contemplating a T-Shirt advertising promotion. Monthly sales data from T-shirt shops marketing the "Listen to KRDY-FM" design indicates that:

Q=15,000-800P, where Q is T-Shirt and P is price.

a) How many t-shirts could KRDY-FM sell at $15 each?

b) What price would KRDY-FM have to charge to sell 5,000 t-shirts?

c) Calculate the point price elasticity of demand at a price of $15 and indicate whether demand is elastic or inelastic at this price point

Reference no: EM131007981

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