(7 points) P&G used scanner data on prices and quantities to estimate demand for the Gillette Fusion Pro-Shield Razor. The resulting demand function is: Q = 152 - 9P where O is in millions of razors.

Suppose the original price for the Fusion Pro-Shield Razor is $10. Compute the (own-price) elasticity of demand for the Fusion Pro-Shield Razor at this price. Provide a quantitative answer and make sure to show your work. Is the demand at this price point elastic, inelastic, or unit elastic?

1. (6 points) Using your answer from (a), how much will volume sold change (in %) due to a price cut of 13%? Provide a quantitative answer and make sure to show your work.
2. (8 points) Calculate the change in revenue due to the 13% price cut for the Fusion Pro-Shield Razor. Provide a quantitative answer and make sure to show your work.
3. (15 points) Derive marginal revenue for the Fusion Pro-Shield Razor. Compute marginal revenue at the initial price of $10. Provide a quantitative answer and make sure to show your work.