A firm's total profit is given by 20x - x + 16y-2y.

a. What values of x and y will maximize the firm's profit?

b. Repeat part a assuming the firm faces the constraint x + y 8.

c. Repeat part a assuming the constraint is x+5y=7.5. 1.

During a five-year period, the ticket sales of a city's professional basketball team have increased 30 percent at the same time that average ticket prices have risen by 50 percent. Do these changes imply an upward-sloping demand curve? Explain 2.

A retail store faces a demand equation for Roller Blades given by: Q = 180 -1.5P, where Qis the number of pairs sold per month and P is the price per pair in dollars.

a. The store currently charges P = $80 per pair. At this price, determine the number of pairs sold.

b. If management were to raise the price to $100, what would be the impact on pairs sold? On the store's revenue from Roller Blades?

c. Compute the point elasticity of demand first at P-$80, then at P = $100. At which price is demand more price sensitive?