Question: Q D = 50 - 0.5 P (or, equivalently, P = 100 - 2 Q D ), and Q S = -40 + P (or,

Q^D = 50 - 0.5P (or, equivalently, P= 100 - 2Q^D), and Q^S = -40 + P (or, equivalently, P = 40 + Q^S),

Calculate the price elasticity of demand between a price of $60 and a price of $70. Is demand elastic, inelastic, or unit elastic? Explain.

Given this elasticity, if the price were to rise, what would you expect to happen to total revenue (total expenditure)? Explain without using numbers.

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