Question: Home Defense Hardware, a full service home center, is thinking about offering several new models of barbeque grills. The top of the line is The Carnivore, a massive unit that, according to the manufacturer, 'Receives all regular season NFL games, has taps for a beer keg and puts out more heat than an 18 -year old on Prom Night." Home Defense cost is $2000 per unit and they estimate that the demand is given by \(\mathrm{P}=18000-40 \mathrm{Q}\)

1. Determine the optimal price and quantity for Home Defense to charge.
   \(\mathrm{P}=\)
   \(\mathrm{Q}=\)
2. Calculate the point elasticity of demand at the optimum.

Elasticity =

Price: $2.99

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