Allied Electric Co. is developing a new design for its portable electric hair dryer Test market data indicate a demand for the new hair -dryer as follows:
Q= 30,000- 1000P
Where Q is hair- dryer sales and P its price.
I. How many hair dryers could allied sell at Rs. 22.50 each?
II. What price would Allied have to charge to sell 12,000 hair dryers?
III. Calculate price elasticity of demand at price of Rs. 20.