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Travis s demand for ice cream is QT = 12 - 3P and Maya s is QM = 6 - P.

1) Find the market demand for ice cream if Travis and Maya are the only two consumers in the market.

2) What is the price elasticity of demand when P = 2?

3) At this price, is demand elastic, unit elastic, or inelastic?

4) If this price were to increase by a little bit, what would happen to the total revenues from ice cream sales?c

pur-new-sol

market demand for ice cream:

price elasticity when P = 2:

At this price, elasticity is less than 1, thus, inelastic.

If the price increases, total revenue would rise marginally, also a small fall in demand.

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