1. The demand for the product is described as Qd=12-2P For prices P=1 and P=4 Determine the elasticity of demand. What is the seller's revenue at these points of demand?Illustrate the solution graphically. 2. Fixed costs of the company -40 thousand rubles.Average variable costs -20 rubles. The quantity of products produced is 1000 units. The selling price of a unit of production is 100 rubles. Determine the amount of profit (loss) of the company.

1. To determine the elasticity of demand, we can use the formula:<br /><br />Elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in price)<br /><br />For $P=1$, the quantity demanded is $Qd=12-2(1)=10$. For $P=4$, the quantity demanded is $Qd=12-2(4)=4$.<br /><br />The percentage change in quantity demanded is $\frac{10-4}{10} \times 100\% = 60\%$.<br /><br />The percentage change in price is $\frac{4-1}{1} \times 100\% = 300\%$.<br /><br />Therefore, the elasticity of demand is $\frac{60\%}{300\%} = 0.2$.<br /><br />To calculate the seller's revenue at these points of demand, we can use the formula:<br /><br />Revenue = Price $\times$ Quantity<br /><br />For $P=1$, the revenue is $1 \times 10 = 10$ rubles.<br /><br />For $P=4$, the revenue is $4 \times 4 = 16$ rubles.<br /><br />To illustrate the solution graphically, we can plot the demand curve using the given demand function $Qd=12-2P$. The elasticity of demand can be shown on the graph as the ratio of the vertical change (change in quantity demanded) to the horizontal change (change in price).<br /><br />2. To determine the amount of profit (loss) of the company, we can use the formula:<br /><br />Profit = Total revenue - Total cost<br /><br />Total revenue is calculated as the selling price per unit multiplied by the quantity of units sold. In this case, the selling price is 100 rubles and the quantity produced is 1000 units, so the total revenue is $100 \times 1000 = 100,000$ rubles.<br /><br />Total cost is the sum of fixed costs and variable costs. The fixed costs are 40 thousand rubles and the average variable cost is 20 rubles per unit. Since the quantity produced is 1000 units, the total variable cost is $20 \times 1000 = 20,000$ rubles. Therefore, the total cost is $40,000 + 20,000 = 60,000$ rubles.<br /><br />Therefore, the profit (loss) of the company is $100,000 - 60,000 = 40,000$ rubles.