Calculate the point price elasticity of demand. Is demand elastic, inelastic, or unit elastic. The demand curve is given by Q_D= 5,000 - 50 P_X

When the price of the product is $50; When the price of the product is $75

a. For each case, should the firm rise or lower the price to maximize revenues? Why

b. Suppose the income elasticity of demand is 1.5 what impact will a recession cause for the demand of the product and why?

c. The cross-price elasticity of demand between this good and a related good is -3.5; what can you determine about consumer demand for the product from the information? If the price where to change by 10% How will this affect your sales? Explain