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Please answer the following questions: 1)Graph the accompanying demand data, and then use the midpoint formula...

Please answer the following questions:

1)Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elasticity of demand for each of the four possible $1 price changes.  Explain in a nontechnical way why demand is elastic in the upper segment of the demand curve and inelastic in the lower segment.  
Product Price
Quantity Demanded
$5
1
$4
2
$3
3
$2
4
$1
5

2)How would the following changes in price affect the total revenue?  That is, would total revenue increase, decrease, or remain unchanged?
Price falls and demand is inelastic?
Price rises and demand is elastic?
Price rises and supply is elastic?
Price rises and supply is inelastic?
Prices rises and demand is inelastic?
Price falls and demand is elastic?
Price falls and demand is of unit elasticity?

3) Suppose the cross elasticity of demand for products A and B is +3.6 and for products C and D is -5.4.  What can you conclude about how products A and B are related?  Products C and D?  That is, are they substitutes or complements?

4) The income elasticities of demand for movies, dental services, and clothing have been estimated to be +3.4, +1.0, and +0.5, respectively.  Interpret these coefficients. That is, which item is a necessity and which is a luxury item?  What does it mean if an income elasticity coefficient is negative?

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