1. We have the demand function P = 24 3Q for a product.
(a) Calculate the price elasticity when price is $14.
(b) Suppose there is only one firm in this market (monopoly), and the firm’s total revenue is defined as P*Q. What’s the price level that maximizes the total revenue?

Answer rating: 100% (QA)

To calculate the price elasticity of demand when the price is 14 we first need to differentiate the ... View the full answer