Q. Demand for DVD rentals at a video store is described by equation: Q= 4,000-500P, where Q denotes number of DVDs rented per week and P is rental price in dollars.
a. Determine point price elasticity of demand at P= $3.00
b. Illustrate what would be new point price elasticity if price were raised to P= $4.50?
c. If profit maximizing price is $4.50, illustrate what is marginal cost of a rental? Please Explain how all work