### Macroeconomics: elasticity and marginal rate of substitution

1. Demand curve: P = 1,000 â?" 25Q, where P is price and Q is quantity sold per month. dQ/dP = -1/100 n= (dQ/DP) * (P/Q) 1) Calculate the price elasticity of demand if price equals $250. 2)Calculate the price that maximizes total revenue. 2 Assume that you have $150 that you can spend on either concert tickets o