1. The demand curve is Q_d= 200 - P. Calculate the (point) price elasticity of demand when price is $24. Is demand elastic or inelastic?

2.Suppose equilibrium price in the market is $30, and the marginal revenue is $20. What is the price elasticity of demand?

3.The David Company's demand curve for the company's product is P = 2,000 - 20Q, where P = price and Q = the number sold per month.

a.Derive the marginal revenue curve for the firm.

b.At what output is the demand for the firm's product price elastic?

c.If the firm wants to maximize its dollar sales volume, what price should it charge?