You operate your own business selling university t-shirts. The demand schedule for your t-shirts is as follows: P = 25 - 0.5Q.
a) Graph and label the demand curve for your t-shirts
b) Calculate the price elasticity of demand when price equals $10
c) In what range does price elasticity of demand fall at $10 (elastic, unit elastic, inelastic)?
d) If your goal is to maximize total revenue, how should you change the price if you are currently charging $10?