3. Given the normal market demand function, Qd = 680 -1.25P, answer the four questions (a....

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3. Given the normal market demand function, Qd = 680 -1.25P, answer the four questions (a. through d.) below. a. What is the maximum number of units of output demanded in this market (i.e. at what quantity would demand stop, even if the good were free)? (2 pts.) b. What is the market reservation price (i.e. the maximum price anyone is willing to pay for the good)? (2 pts.) c. Enter formulas to calculate quantity demanded, total revenue, and the price elasticity of demand for each of the following prices (9 pts.): NOTE: Use the point-elasticity formula to calculate price elasticity of demand for each price and quantity combination. NOTE: Include the proper arithmetic sign in your calculation of price elasticity of demand. Price $130 Quantity Demanded $272 $425 Total Revenue Price Elasticity of Demand BE d. Use information from the previous question to answer the questions below. NOTE: Put percentage values in decimal terms (e.g. express 7% as 0.07). d1. Based on a price of $425, what is the percentage change in quantity demanded if price is increased by 3%? (2 pts.) NOTE: Include the arithmetic sign as well as the value (in decimal terms). Percentage Change in Quantity Demanded: d2. What is the new total revenue in this case? (3 pts.) NOTE: Calculation should include the initial value of total revenue. New Total Revenue: 3. Given the normal market demand function, Qd = 680 -1.25P, answer the four questions (a. through d.) below. a. What is the maximum number of units of output demanded in this market (i.e. at what quantity would demand stop, even if the good were free)? (2 pts.) b. What is the market reservation price (i.e. the maximum price anyone is willing to pay for the good)? (2 pts.) c. Enter formulas to calculate quantity demanded, total revenue, and the price elasticity of demand for each of the following prices (9 pts.): NOTE: Use the point-elasticity formula to calculate price elasticity of demand for each price and quantity combination. NOTE: Include the proper arithmetic sign in your calculation of price elasticity of demand. Price $130 Quantity Demanded $272 $425 Total Revenue Price Elasticity of Demand BE d. Use information from the previous question to answer the questions below. NOTE: Put percentage values in decimal terms (e.g. express 7% as 0.07). d1. Based on a price of $425, what is the percentage change in quantity demanded if price is increased by 3%? (2 pts.) NOTE: Include the arithmetic sign as well as the value (in decimal terms). Percentage Change in Quantity Demanded: d2. What is the new total revenue in this case? (3 pts.) NOTE: Calculation should include the initial value of total revenue. New Total Revenue: