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ABC Sports, A stor that sells various types of sports clothing and other sports items, is planning to introduce a new design of Arizona Diamondbacks' baseball caps. A consultant has estimated demand curve to be Q = 2,000 - 100P where Q is cap sales and P is price
A.How many caps would ABC sell at $6 each
B. How much would the price have tobe to sell 1800 caps?.
C. Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free?
D. At what price would no caps be sold?
E. Calculate the price elasticity of demand at a price of $6
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show the new quantity demanded at that price as we did in class. Also, show that the new total revenue will be greater than then old total revenue.
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