1. Suppose you have a demand function given by: Q = 600 ? 0.5P. What is the price at which demand elasticity is Ed = ? 2? Hint: Instead of using price to find elasticity, you will now have to use elasticity to find price. You can use the point elasticity formula.
2. Suppose you have a demand function given by: Q = 1600 ? 4P. What is the price at which demand elasticity is unit elastic? Hint: You can just find the midpoint!