You are the manager of a firm that sells CR2032 batteries for car key fobs and other electronic goods. You typically sell the fobs for $7 for a four-pack and sell an average of 27,192 four-packs per month. Due to increased labor costs, you decide to raise the price to $9 per four-pack. When you do this your monthly sales fall to 22,248 four-packs. Using the demand function that you estimated in the first problem
a. Calculate the point price elasticity when the price is $9. In addition, is demand inelastic, unit elastic or elastic at this price? Based on your calculations in questions 3, what price would you expect to maximize revenue? Is this consistent with your answers to question 2?