The equation of an estimated demand function is as follows: - QdA (Quantity demand for A) = 200.5 - 2.5 Pa - 1.5Pb + 3.5 I where, Pa = Price of A Pb = Price of B [It is a related product] I = Income (i) Determine the demand when Pa = $ 500, Pb = $ 100 and I = $ 3000 (ii) Estimate the price elasticity, cross-price elasticity and income elasticity of the demand according to point method.

Worldwide annual sales of smart phones in over a five-year period were projected to be approximately q=-10p+4440 million phones at a selling price of $P per phone. Obtain a formula for the price of elasticity of demand E. In one particular year the actual selling price was $271 per phone. What was the corresponding price elasticity of demand? Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. What, nearest to the nearest 10 million, would have been the resulting annual revenue?

If possible, please include made-up numerical values.

Subpart 1-3

Over the range from $12 to $14, Qd goes from 30 to 24.  Using this range of prices and quantities, you should calculate the coefficient of price elasticity of demand.  In the box labeled E1, the coefficient of price elasticity of demand is:     2     6     1.36     1.44   In box E2, you would interpret the coefficient calculated in the previous question.  Therefore, you would characterize this range as:     Elastic     Unit Elastic     Inelastic     None of the Above

please help the answers I got were wrong!!!

An actual demand elasticity of -2 when the breakeven demand elasticity is -4 would be a bad thing in the case of a price increase. 1) True 2) False