Consider a demand function given by QD=100/P.

a.) Does this demand function satisfy the Law of Demand? if so why.

b.) Calculate quantity demanded at the prices 2, 5, 10, 20, and 50. Then, graph the

demand function

c.) How much revenue is generated at each of these 5 points? Calculate revenue values, and draw the values for total revenue on your graph.

d.) Use the demand function, substitution, and the definition of total revenue TR =PQ to show that your result from part b.) is not a coincidence, and will hold for every point on the demand curve.

e.) What do your answers from c.) and d.) - about total revenue - tell you about the price elasticity of demand for this demand function? You may not be able to calculate the numerical value, but give me a hypothesis about D and support your argument.