The demand curve is:QD = 500 – 1/2PA. Calculate the (point) price elasticity of demand when price is $100. Is demand elastic orinelastic?B. Calculate the (point) price elasticity of demand when price is $700. Is demand elastic orinelastic?C. Find the point at which point elasticity is equal to -1.The demand curve is:QD = 500 – 1/2PA. Calculate the (point) price elasticity of demand when price is $100. Is demandelastic or inelastic?Elasticity is given by e = (?Q/?P)*(P/Q)Hence totally…
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