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Allied Electric Co. is developing a new design for its portable electric hair-dryer Test market data indicate a demand for the new hair-dryer as follows:
Allied Electric Co. is developing a new design for its portable electric hair-dryer
Test market data indicate a demand for the new hair-dryer as follows:
Q=30,000- 1,000P
where
Q is hair-dryer sales and
P is its price.
How many hair-dryers could Allied sell at Rs. 22.50 each?
What price would Allied have to charge to sell 12,000 hair-dryers?
(iii) At what price would hair-dryer sales be zero?
(iv) Calculate point price elasticity of demand at a price of Rs. 20
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