1. A band on tour typically sells promo t-shirts for $20 each, and sells 12,000 shirts at that price. When they raise the price to $25, they sell 10,000 t- shirts. 0 4000 8000 10,000 12,000 14,000 16,000 20,000 a. Assume the price-demand relationship is linear. Find the equation that gives price as a function of the number of t-shirts sold. b. According to the model, at what price will no t-shirts be sold? c. Fill in the table showing the relationship between t-shirts sold, price, and revenue. X = number of shirts sold Y = price $25 $20 Revenue = price times number of shirts sold d. Use the table to show a sketch of revenue as a function of the number of t-shirts sold.

1. A band on tour typically sells promo t-shirts for $20 each, and sells 12,000 shirts at that price. When they raise the price to $25, they sell 10,000 t- shirts. 0 4000 8000 10,000 12,000 14,000 16,000 20,000 a. Assume the price-demand relationship is linear. Find the equation that gives price as a function of the number of t-shirts sold. b. According to the model, at what price will no t-shirts be sold? c. Fill in the table showing the relationship between t-shirts sold, price, and revenue. X = number of shirts sold Y = price $25 $20 Revenue = price times number of shirts sold d. Use the table to show a sketch of revenue as a function of the number of t-shirts sold.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

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