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The following is the demand curve for Addi's toasters:
P = 900 - 10Q
a. What is the price elasticity of demand for toasters when the price = $100?
b. Derive the Marginal Revenue curve for toasters.
c. If Addi wants to maximize the total revenue generated by sale of toasters, how many toasters should it produce and what price will he get for these toasters?
d. For what prices will the demand curve be elastic? Inelastic?From above calculation we have,
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