a. Given f = dQ/dP · P/Q, where D = Q = 700 - 4P, what is the price, total revenue, and elasticity at Q = 100?
b. Let X = 120, a = 1, and ß = -3. Solve and explain X = aPxß. If D = X = 300 - 2P, can elasticity be calculated from this equation? What happens if X is allowed to change?
c. Why is elasticity of demand, useful in policy decisions? Consider both price elasticity of demand and income elasticity of demand.
d. Using graphs to illustrate your explanations of elasticity of demand, when elasticity changes and when it does not?