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Suppose the demand curve for iPads takes the functional form: Q^d(P) = 500 10P; what is the own price elasticity of demand when the

Suppose the demand curve for iPads takes the functional form: Q^d(P) = 500 – 10P; what is the own price elasticity of demand when the price is $30? Is the own price elasticity of demand for iPads elastic E >1, inelastic E < 1, or unitary elastic E = 1? And what implications does that outcome have with respect to the producer’s total revenue (TR = PQ)?

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SOLUTION To find the own price elasticity of demand for iPads when the price is 30 we need to calculate the change in quantity demanded Q in response ... blur-text-image

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