Question: Suppose the demand for apples is given by q = 200 - p?. a) Find the price elasticity of demand when price, p = $5.

Suppose the demand for apples is given by q = 200 - p?. a) Find the price elasticity of demand when price, p = $5. Is demand elastic or inelastic (to price changes)? b) Find the price elasticity of demand when price, p - $12. Is demand elastic or inelastic (to price changes)? c) Should the company consider increasing its price from $12? How does your answer from b) help you answer this question? 55

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