Let the Price Elasticity of Demand for a Soft Drink

Multiple Choice

Let the price elasticity of demand for a soft drink be - 2. In the year 2005, the per capita consumption of soft drinks was about 500 cans per person, and the average price was $1.00 per can. If we suppose that demand for the soft drink is linear, Q^d = a - bP, where a and b are constants, Q^d is quantity demanded and P is price, an estimate of the demand equation could be:

A) Q^d = 100 - 2P
B) Q^d = 1500 - 2P
C) Q^d = 1500 - 1000P
D) Q^d = 1000 - 1500P