Important information about own price elasticity of demand
OK I am stumped - A bike shop that goes by the name of Crash and Burn is contemplating a backpack advertising promotion. Monthly sales data from backpack shops marketing the "Crash and Burn" design indicate that the demand curve for the T-shirts can be described as:
Q = 4,000 - 500P (where Q is backpack sales and P is price).
a.How many T-shirts could the cafe sell at $5 each?
b.What price would Crash and Burn have to charge to sell 2,000 T shirts?
c.Calculate the own price elasticity of demand when the price goes from $5 to $4.