The Johnson Robot Company’s marketing managers estimate that the demand curve for the company’s robots in 2008 is P = 3,000 - 40Q where P is the price of a robot and Q is the number sold per month. At what prices is the demand for the firm’s product price elastic? a. $1500 b. Greater than $1500 c. Less than $1500 d. $1000
The Johnson Robot Company’s marketing managers estimate that the demand curve for the company’s robots in 2008 is P = 3,000 - 40Q where P is the price of a robot and Q is the number sold per month. At what prices is the demand for the firm’s product price elastic? a. $1500 b. Greater than $1500 c. Less than $1500 d. $1000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The Johnson Robot Company’s marketing managers estimate that the
curve for the company’s robots in 2008 is
P = 3,000 - 40Q
where P is the
At what prices is the demand for the firm’s product price elastic?
| a. |
$1500 |
|
| b. |
Greater than $1500 |
|
| c. |
Less than $1500 |
|
| d. |
$1000 |
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