Computing revenue maximizing price

Reference no: EM1366686

If the demand for the Chicago Expressway is: P = 800 - 0.16Q

If P = $2, What is the Quantity Demanded?

At what price quantity point does this demand curve have a price elasticity of -1?

If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?

Reference no: EM1366686

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