Complete the table bellow, if demand fuction is Q = 250 – 25P
*EP: Price Elasticity
Questions:
a. Describe the relationship between demand, TR, MR and price elasticity!
b. At what price the demand is inelastic, elastic, & unitary?
c. When demand is elastic and inelastic, should the price be lowered or should it be increased? Prove it with the numbers from the table.