KROM-FM is currently contemplating a T-shirt advertising promotion. Sales data from T-shirt shops marketing a prototype of the KROM design indicate that Q=1,200-200P Where Q is T-shirt sales and P is price.
a. How many T-shirts could KROM sell at $4.50 each?
b. What price would KROM have to charge to sell 900 T-shirts?
c. At what price would T-shirt sales equal zero?
d. Calculate the point price elasticity of demand at a price $3.00. Comment on your result.
Answer will be sent by email as attachment.
