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(All Steps) A retail store faces a demand curve for roller blades given by: Q = 180 — 1.5P where Q is the number of roller blades sold per month and P is the

Question: A retail store faces a demand curve for roller blades given by:

Q = 180 — 1.5P

where Q is the number of roller blades sold per month and P is the price per pair, in dollars.

  1. The store currently charges $80 per pair. At this price, determine the number of pairs sold.
  2. If management decided to raise the price to $100, what would be the impact on pairs sold?
  3. Compute the point price elasticity at $80. Does this answer agree with your findings for part b?

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Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document


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