Compute the own price elasticity of demand at a price

Assignment Help Macroeconomics

Reference no: EM1328189

Demand Curve and Price Elasticity

A radio station that goes by the name KRDY-FM is contemplating a T shirt advertising promotion. Monthly sales data from T shirt shops marketing the "Listen to KRDY-FM" design indicate that the demand curve for the T-shirts can be described as:

Q = 3,000 - 500P

Where: Q is T shirt sales and P is price.

a. How many T-shirts could KRDY-FM sell at $4 each?

b. What price would KRDY-FM have to charge to sell 2,000 T shirts?

c. Calculate the own price elasticity of demand at a price of $4.

d. What is the inverse demand curve for the radio station?

Reference no: EM1328189

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