SOLUTION: Q = 2,000 - 100P where Q is cap sales and P is price. a. How many caps could ABC sell at $6 each? b. How much would the price have to be to sell 1,800 caps? c. Suppose ABC were

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Q = 2,000 - 100P where Q is cap sales and P is price. a. How many caps could ABC sell at $6 each? b. How much would the price have to be to sell 1,800 caps? c. Suppose ABC were      Log On


   

Question 1127659: Q = 2,000 - 100P
where Q is cap sales and P is price.
a. How many caps could ABC sell at $6 each?
b. How much would the price have to be to sell 1,800 caps?
c. Suppose ABC were to use the caps as a promotion. How many caps could ABC give
away free?
d. At what price would no caps be sold?
e. Calculate the point price elasticity of demand at a price of $6.
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
Q+=+2000+-+100P
where Q is cap sales and P is price.
a.
How many caps could ABC sell at $6 each?
P=6
Q+=+2000+-+100%2A6
Q+=+2000+-+600
Q+=+1400
ABC could 1400 sell at $6 each

b.
How much would the price have to be to sell 1800 caps?
Q+=1800
1800=+2000+-+100P
100P=+2000+-+1800
100P=+200
P=+2
the price have to be to sell 1800 caps is $2 each


c.
Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free?
give away free means P=+0
Q+=+2000+-+100%2A0
Q+=+2000+

d. At what price would no caps be sold?
Q+=0
0+=+2000+-+100%2AP
100%2AP+=+2000+
P+=+2000%2F100+
P+=+2000%2F100+
at $20 each

e.
Calculate the point price elasticity of demand at a price of $6.
elasticity=%28-100%29%286%2F1400%29=-600%2F1400+=-0.43