Harding Enterprises has developed a new product called the Gillooly shillelagh. The market demand for this product is given as follows:
Q = 240 - 4P
a. If the shillelagh is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic?
b. If the shillelagh price is increased slightly from $40, what will happen to the total expenditure on the Gillooly shillelagh?

Question

Quizplus · Accepted Answer

The Answer of Harding Enterprises has developed a new product called the Gillooly shillelagh. The market demand for this product is given as follows:
Q = 240 - 4P
a. If the shillelagh is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic?
b. If the shillelagh price is increased slightly from $40, what will happen to the total expenditure on the Gillooly shillelagh?

Harding Enterprises Has Developed a New Product Called the Gillooly