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The hourly demand for music downloads is given by:

Q^d= 25 - 5P,

where Q^dis the number of songs demanded per hour, and P is the price of downloading a song.

Suppose that P = $3. At this price, what does the price elasticity of demand equal? What is the total revenue?

At what price does = 1? What is the total revenue when the price is $2.50?

Explain whether your results to part a and part b are consistent with the Total Revenue Test.