CAN SIR HELP ME IN 45 MINUTES

a.Given that, the demand curve is: QD = 500 - 1/2 P.

i.Calculate the (point) price elasticity of demand when price is RM100 and RM700. State the type of elasticity for both prices.[4 Marks]

ii.Find the point at which elasticity is equal to -1.[2 Marks]

iii.Assuming the demand function is for coffee and based on the answer found in part (i), what will happen to the revenues from coffee if the price is increased by 10%? Explain.[2 Marks]

b.Delta Enterprise (DE) produces a line of metal office file cabinets. The company's economist,having investigated a large number of past data, has established the following equation:

Q= 10,000 + 50 B - 80P + 50 C

Where

Q = Annual number of cabinet sold

B = Index of nonresidential construction

P = Average price per cabinet changed by DE

C = Average price per cabinet changed by DE's closest competitors

It is expected that next year's nonresidential construction index will stand at 160, DE's average price will be RM40 and the competitor's average price will be RM35.

i. Forecast next year's sales. [2 Marks]

ii. What will be the effect if the competitor lowers its prices to RM32?[2 Marks]

iii. Describe any other factors apart of the factors given that can influence the

demand for metal cabinet.[3 Marks]