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

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

a. The store currently charges $80 per pair. At this price, determine the number of pairs sold.

b. If management decided to raise the price to $100, what would be the impact on pairs sold?

c. Compute the point price elasticity at $80. Does this answer agree with your findings for part b?