A hot dog vendor faces a daily demand curve of Q = 1800 - 15P, where P is the price of a hot dog in cents and Q is the number of hot dogs purchased each day.
a. If the vendor has been selling 300 hot dogs each day, how much revenue has he been collecting?
b. What is the price elasticity of demand for hot dogs?
c. The vendor decides that he wants to generate more revenue. Should he raise or lower the price of his hot dogs?
d. At what price would he achieve maximum total revenue?