KSU Products has just carried out a survey of the demand for

their guidebooks to spoken Arabic. They have found the

following results over the last six months.

Sales revenue 356 398 372 360 365 350

Price($) 4.5 4.0 4.2 4.5 4.3 4.8

a. Estimate an appropriate demand relationship; Q=aP^b

.

b. Make a forecast of sales revenue for a price of $5, stating

any assumptions.

c. Estimate the price elasticity of demand for the data as a whole.

d. If price is raised 10 per cent in general terms, what will

happen to revenue?