1. Jaime owns a monopoly business selling sweatshirts. Thedemand for her product is given by: Q = 2000 ? 15P. She iscurrently selling sweatshirts at P = $80. What is the priceelasticity of demand when the price is P = $55? You will have touse the point elasticity formula. The price elasticity of demand atthis price is ___________

A: -0.7

2. Consider your answer to the previous question. If Jaime wantsto increase the revenue received by her firm, what should shedo?

a )She should raise the price of her sweatshirts

b) She should lower the price of her sweatshirts (O)

c) She is already maximizing her revenue and should not changeher prices

If I'm wrong, please fix it to correct answer!