ECON homework help.

So I have these two study guides I really need help with to prepare for a test thats coming up. I've been working on them quite a bit, but they are still confusing to me.
Heres an example of some of the questions:


A. Case 1 (20%): AIG Manufacturing Company Case:

The AIG Manufacturing Company believes that the demand schedule for its product is given as:

Price (P) | Quantity (Q)
$0 | 15 units
1 | 14
2 | 13
3 | 12
4 | 11
5 | 10

Where P is the Price of its product (in dollars) and Q is the number in millions of units of its product sold per day. It is currently charging a price of $1 per unit of its product.

1. President of the Company has asked you to comment on the wisdom of its pricing policy. Write a short paragraph on this score – highlight your recommendation and explain why you are making this recommendation.



2. Calculate the slope of the demand curve for this Company for all the different price points. Interpret the results of your calculation in economic terms.

3. A marketing consultant says the price elasticity of demand for this Company’s product is “1.0”. Do you agree? Why or why not.

4. Calculate the price elasticity of demand for each of the price points given above. Compare the various price elasticities of demand you just calculated against the corresponding values of slope you calculate in Item 2 above. Interpret your results.



B. Case 2 (40%): Stopdecay Company Case

The Stopdecay Company sells an electric toothbrush for $25.00. Their sales have averaged 8,000 units per month over the last year. Recently, their closest competitor, Decayfighter, reduced the price of their electric toothbrush from $35.00 to $30.00. As a result, Stopdecay’s sales declined by 1,500 units per month.

1. What is the arc price elasticity of demand between Stopdecay’s toothbrush and Decayfighter’s toothbrush? What relationship exists between the products?

2. If Stopdecay knows the arc price elasticity of demand for its toothbrush is -1.5, what price would Stopdecay have to charge in order to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30.00.

3. Is the result necessarily desirable for Stopdecay? What other factors would have to be taken into consideration?

If someone could help me with these questions and another study guide I would greatly appreciate it and I would totally send you money through paypal for your time. Let me know if you can help me with these study questions.