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Planing a sweatshirt advertising promotion

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Reference no: EM131243274

Casa della Maison Restaurant is planing a sweatshirt advertising promotion. Limited sales data from a few sweatshirt sales of a prototype of the design indicate that

Q = 2000 - 200P

where Q is sweatshirt sales and P is price.

a. Give an economic interpretation of the slope coefficient.

b. What price would it have to charge to sell 1,500 sweatshirts?

c. Calculate the price elasticity of demand between the price range of $5 and $7.

d. Calculate the point price elasticity of demand at a price of $5.

Reference no: EM131243274

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