2. The demand function for bottled water from Stillwater Springs is Q=25-10P + 51 Where P = the price of a 36-bottle case of the water and I = Average per capita income (in thousands of dollars). a. If I = 15 thousand dollars, what is the demand curve for bottled water? Q b. At P= $4, what is the point price elasticity of demand? What can you say about the profitability of a water sale? EQxPx A sale will increase profits/ reduce profits/ have an indeterminate effect on profits (Circle one)

2. The demand function for bottled water from Stillwater Springs is Q=25-10P + 51 Where P = the price of a 36-bottle case of the water and I = Average per capita income (in thousands of dollars). a. If I = 15 thousand dollars, what is the demand curve for bottled water? Q b. At P= $4, what is the point price elasticity of demand? What can you say about the profitability of a water sale? EQxPx A sale will increase profits/ reduce profits/ have an indeterminate effect on profits (Circle one)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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