Market demand is given as Qd = 750 – 2P. Market supply is given as Qs = 3P - 15. What is the point elasticity of demand at the equilibrium price, and if the firm could change its price, would the firm increase or decrease the price in order to increase total revenue? a. 5.80, the firm will decrease the price b. 0.69, the firm will decrease the price c. 0.69, the firm will increase the price d. 5.80, the

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.3P: (Categories of Price Elasticity of Demand) For each of the following absolute values of price...
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Market demand is given as Qd = 750 – 2P. Market supply is given as Qs = 3P - 15. What is the point elasticity of demand at the equilibrium price, and if the firm could change its price, would the firm increase or decrease the price in order to increase total revenue?

a. 5.80, the firm will decrease the price

b. 0.69, the firm will decrease the price

c. 0.69, the firm will increase the price

d. 5.80, the

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