3.1 Harding Enterprises has developed a new product called the Gillooly shillelagh. The market demand for this product is given as follows: 3.1.1 Q = 240 - 4P If the shillelagh is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic? 3.1.2 If the shillelagh price is increased slightly from $40, what will happen to the total expenditure on the Gillooly shillelagh?
3.1 Harding Enterprises has developed a new product called the Gillooly shillelagh. The market demand for this product is given as follows: 3.1.1 Q = 240 - 4P If the shillelagh is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic? 3.1.2 If the shillelagh price is increased slightly from $40, what will happen to the total expenditure on the Gillooly shillelagh?
Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 4SQP
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Transcribed Image Text:3.1 Harding Enterprises has developed a new product called the Gillooly shillelagh. The
market demand for this product is given as follows:
3.1.1
Q = 240 - 4P
If the shillelagh is priced at $40, what is the point price elasticity of demand?
Is demand elastic or inelastic?
3.1.2 If the shillelagh price is increased slightly from $40, what will happen to the total
expenditure on the Gillooly shillelagh?
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