Pretend that you have a lemonade stand and that the demand for lemonade in your neighborhood is estimated to be: Q = 80 - 200 P

The profit (revenue) maximizing price is ______cents

The profit maximizing quantity (in cups) of lemonade is

The corresponding maximum profit is $_______

Suppose that there was a demand shock so that the new estimated demand function for lemonade in your neighborhood changes to:

Q = 140 - 200 P

A demand curve would change like this due to:

tax increase or tax decrease

The new profit (revenue) maximizing price is _____cents.

The new profit maximizing quantity (in cups) of lemonade is _____

The new corresponding maximum profit is $______

magine that you kept the "sticky" lemonade price even though demand has changed (use the price you found in #12). What is the quantity sold now? ________