2 A durian seller faces a demand function given by P 48 4Q, where Q is the number of durians sold, and P is the price of a durian (in $) The seller charges $4 per durian (10 marks) Calculate the price elasticity of demand Is the demand elastic, inelastic or unitary elastic Explain (10 marks) How much should the price per durian be for the price elasticity of demand to be unitary elastic Calculate

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Question: 2. A durian seller faces a demand function given by P = 48 4Q, where Q is the number of durians sold, and P is

2. A durian seller faces a demand function given by P = 48 4Q, where Q is the number of durians sold, and P is the price of a durian (in $). The seller charges $4 per durian.

(10 marks) Calculate the price elasticity of demand. Is the demand elastic, inelastic or unitary elastic? Explain.
(10 marks) How much should the price per durian be for the price elasticity of demand to be unitary elastic? Calculate.

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