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The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows:
P = 2,000 - 50Q
Where P is the price (in dollars) of an engine, and Q is the number of engines sold per month
a) To sell 20 engines per month, what price would Wozniak Corporation have to charge?
b) If it sets a price of $500, how many engines will Wozniak sell per month?
c) What is the price elasticity of demand if price equals $500?
d) At what price, if any, will the demand for Wozniak's engines be of unitary elastic?
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