Question: Allied Electric Co. is developing a new design for its portable electric hair-dryer Test market data indicate a demand for the new hair-dryer as follows:

Allied Electric Co. is developing a new design for its portable electric hair-dryer Test market data indicate a demand for the new hair-dryer as follows: Q=30,000 - 1,000P where Q is hair-dryer sales and P is its price. (i) How many hair-dryers could Allied sell at Rs. 22.50 each? (ii) What price would Allied have to charge to sell 12,000 hair-dryers? (iii) At what price would hair-dryer sales be zero? (iv) Calculate point price elasticity of demand at a price of Rs. 20

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