The Hanover Manufacturing Company believes that the demand curve for its product is
P =5 -Q
where P is the price of its product (in dollars) and Q is the number of millions of units of its products sold per day. It is currently charging a price of $1 per unit for its product.
a. Evaluate the wisdom of the firm's pricing policy
b. A marketing specialist says that the pricing elasticity of demand for the firm's product is - 1.0. is this correct?