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Engaging in a bumper-sticker advertising campaign

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Reference no: EM132268307

Belvedere, Colorado is engaging in a bumper-sticker advertising campaign. Monthly sales data from ski shops selling the "Don't Worry-Be Happy (in Belvedere)" bumper-stickers indicate that:

Q = 6,000 - 2,000P

Where Q is bumper-sticker sales and P is price.

A. How many bumper-stickers could Aspen sell at $2 each?

B. What price would Aspen have to charge to sell 5,000 bumper-stickers?

C. At what price would bumper-sticker sales equal zero?

D. How many bumper-stickers could be given away?

E. Calculate the point price elasticity of demand at a price of $1.

Reference no: EM132268307

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