If a demand curve goes through the point P = $6 and Qd = 400, then $6 is the highest price consumers will pay for 400 units. consumers will buy more than 400 if price is $6. 400 units are the most consumers will buy if price is $6. $6 is the lowest price consumers can be charged to induce them to buy 400 units. both a and c

(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?

Prove that price elasticity of demand is not the same as the slope of a demand curve.

After running a promotional campaign, the owners of a local hardware store decided to decrease the prices for the advertised products sold in their store. One can infer that a. the promotional expenditures made the demand for the advertised products more elastic. b. the promotional expenditures made the demand for the advertised products less elastic. c. the promotional expenditures had no effect on the demand elasticity. d. the owners got it wrong. To cover the promotional expenses, they should have raised the prices.