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Elasticity The demand for good X is given by: QDX = 200 10 PX. a. Calculate the price elasticity of demand when PX =

Elasticity

The demand for good X is given by:

QDX = 200 – 10 PX.

a. Calculate the price elasticity of demand when PX = $10.

b. At what price, if any, the demand is unitary elastic?

c. Calculate the price elasticity of demand when PX = $5.

d. According to your answer in “c” what will happen to total revenue as we raise the price?

e. Calculate the change in TR as PX ? from $5 to $8.

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