The demand curve is: QD = 10,000 - 10P.
a. Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? How do you know whether demand is elastic or inelastic? What is total revenue at this price?
b. Calculate the (point) price elasticity of demand when price is $500. Is demand elastic or inelastic? How do you know whether demand is elastic or inelastic? What is total revenue at this price?
c. What is the price at which point elasticity is "unit elastic"? What is total revenue at this price?
d. What is the maximum revenue for this demand curve?
(Correct work must be shown that agrees with your answers in order to receive credit. Please show the work and answer to each part separately. If no quantitative work is necessary to answer a question, you may offer a full conceptual explanation that agrees with your answer in lieu of quantitative work.)