Question: 5. Given the demand function QD = 18 3P, answer the following ques tions. (a) Calculate the price elasticity of demand if the price increases

5. Given the demand function QD = 18 3P, answer the following ques tions. (a) Calculate the price elasticity of demand if the price increases from P1 = 2 to P2 = 5 using the midpoint method. (b) Calculate the point price elasticity of demand at Q D = 13.5. (c) At which price/ quantity is demand unit elastic? (d) At which price/ quantity is demand perfectly elastic and perfectly inelastic, respectively? . N1. .\" . i _. .. i n

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