IMPORTANT INFO: I have solved these problems, but I am concerned that I have done these wrong, simply need someone to double check my work. ALL INFO PROVIDED TO ME IS PROVIDED TO YOU. My answers have been bolded

1. (20 total points) Suppose the demand for a product is given by Q_D = 50 - (1/2)P.

a) (10 points) Calculate the Price Elasticity of Demand when the price is $40.

QD=50-(1/2)*$40

= 50-20= $30

Price elasticity= (-1/2)*(40/30)

= (-2/3) or 0.6667

b) (5 points) What price should the firm charge if it wants to maximize its revenue?

2*50-(.5)P*2=P

P=100-P

2P=100

P=50

c) (5 points) Over what price range is demand elastic?

P= 100-2(25)

=50

So any price above 50 would be elastic