Problem II

The demand equation of a certain product is given by $Q=25,000-500P$ where P is the price of the good and $Q$ is the quantity demanded.

a$.$ Select a price P$1$ of your choice with two decimal places within the range $($ $$10\mathrm{.}01$; $$29\mathrm{.}99)$

b$.$ Determine the own$-$price elasticity of demand at your chosen price P$1.$ Make sure to specify the formula used.

c$.$ Is the demand elastic, inelastic or unitary elastic at your chosen price P$1?$ Explain!