A retail store faces a demand equation for Roller Blades given by: Q = 180 - 1.5P, whereQis the number of pairs sold per month and P is the price per paid 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 of elasticity of demand first at P = $80, and then at P = $100. At which price is demand more price sensitive?