ABC Sports, a store 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 the demand curve to be
Q = 2,000 - 100P
where Q is cap sales and P is price.
a. How many caps could ABC sell at $6 each?
b. How much would the price have to be to sell 1,800 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 point price elasticity of demand at a price of $6.