7. Seasons Four Equipment Corporation sells 200 riding lawn mowers per month at a sales price

of $1,800 each. Overall, mower demand is described by the price equation: P = 2,600 - 4Q,

where P is the price of a mower and Q is the quantity of mowers demanded. The firm's

estimated marginal cost is $1,000 per mower. The head of marketing points out that mower

demand is quite elastic at the current $1,800 price. Therefore, he recommends cutting price in

order to increase revenue and profit. Compute the point price elasticity for mower. Is the

marketing chief correct?