Problem $7-1$

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers.

The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer, Freshbreeze: $\backslash ($ Q$=100-5\backslash$mathrm$\{$p$\}\backslash ),$ where $\backslash ($ Q $\backslash )$ is the quantity of an $8$ oz box sold $($in thousand units$)$ and $\backslash ($ p $\backslash )$ the price of an $8$ oz $.$ box.

$\backslash [$

$\backslash$mathrm$\{$Q$\}\backslash$quad$=\backslash$quad $100\backslash$quad$-\backslash$quad $5\backslash$mathrm$\{$p$\}$

$\backslash ]$

Use Excel to calculate the point price elasticity of demand, $\backslash (\backslash$varepsilon $\backslash ),$ for price, $\backslash ($ p$=1,2,3,\backslash$ldots$,19\backslash ).$

Determine the prices at which the demand curve is elastic, inelastic and has unitary elasticity moving from low prices to high prices.

The demand curve is inelastic at prices from to

The demand curve has unitary elasticity at price The demand curve is elastic at prices from