Land's End estimates a demand curve for turtleneck sweaters to be: $\textbf{ Log Q = .41 + 2.3 Log Y - 3 Log P }$
Where Q is quantity,P is price,and Y is a measure on national income.If the marginal cost of imported turtleneck sweaters is $9.00.(Hint: P (1 +1/E)= MC).The optimal monopoly price would be:
A)P = $13.50
B)P = $26.50
C)P = $27.50
D)P = $34.50
E)P = $56.22

Question

Land's End estimates a demand curve for turtleneck sweaters to be: $\textbf{     Log Q = .41 + 2.3 Log Y - 3 Log P    }$ 
Where Q is quantity,P is price,and Y is a measure on national income.If the marginal cost of imported turtleneck sweaters is $9.00.(Hint: P (1 +1/E)= MC).The optimal monopoly price would be:
A)P = $13.50
B)P = $26.50
C)P = $27.50
D)P = $34.50
E)P = $56.22

Quizplus · Accepted Answer

The Answer of Land's End estimates a demand curve for turtleneck sweaters to be: $\textbf{     Log Q = .41 + 2.3 Log Y - 3 Log P    }$ 
Where Q is quantity,P is price,and Y is a measure on national income.If the marginal cost of imported turtleneck sweaters is $9.00.(Hint: P (1 +1/E)= MC).The optimal monopoly price would be:
A)P = $13.50
B)P = $26.50
C)P = $27.50
D)P = $34.50
E)P = $56.22

Land's End Estimates a Demand Curve for Turtleneck Sweaters to Be