Question 1127659
{{{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*6}}}
{{{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*0}}}
{{{Q = 2000 }}}


d. At what price would no caps be sold?

{{{Q =0}}}
{{{0 = 2000 - 100*P}}}
{{{100*P = 2000 }}}
{{{P = 2000/100 }}}
{{{P = 2000/100 }}}

at  ${{{20}}} each


e. 

Calculate the point price elasticity of demand at a price of ${{{6}}}.

{{{elasticity=(-100)(6/1400)=-600/1400 =-0.43}}}