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If the elasticity of demand for good x is minus 0.5 at the price P= $10...

  1. If the elasticity of demand for good x is minus 0.5 at the price P= $10 and quantity Q = 8000,
    1. what is It the value of the parameter b if the demand function is of the form Q = A + bP?
    2. What is the value of the parameter A?
    3. At what price and quantity is total consumer expenditure for good x at its maximum?
    4. At price = $10, quantity = 8000 and Income(M) = $1000, the income elasticity of demand is .025. Expand your estimation of the demand function to identify the parameters K, b and c of the form Q = K + bP + cM.
    5. What is the value of the parameter b if the demand function is of the form Q = APb?
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