0 Consider the market for the EppiPencil, a device which calibrates and auto-injects the drug epinephrine in order to combat an allergic reaction. Assume the initial price of the drug was $50 per unit, and at that price there were 2,000 units sold. Miland, the manufacturer of the EppiPencil, has hired you as an economic consultant. You are tasked with increasing revenues for the company. After some research, you discover that if you raise the price of the EppiPencil to $75, consumers will be willing to purchase 1,500 units. Remember: TotalRevenue 2 Price * QuantitySold (1) Traditional Method Percent Change Formula: New Old %C'hange = T a: 100 (2) Midpoint-Method Percent Change Formula: New Old %Change = m * 100 (3) Based on the information above: 1. At the initial price of $50 per EppiPencil, how much revenue would the total sales of 2000 EppiPencils create for Miland?: Revenue 2 $ ____________ If you recommend the option to raise the price to $75 and sell 1500 EppiPen- cils: 2. At the new price of $75 per EppiPencil, how much revenue would the total sales of 1500 EppiPencils create for Miland?: Revenue = $ ____________ 3. Calculate the Percentage Change in Price: AP = ____________ % 4. Calculate the Percentage Change in Quantity Demanded (be careful with the sign): AQd = ____________ % 5. Calculate the Price Elasticity of Demand (DO NOT use the Mid-Point Method) (DO NOT take the absolute value): (be very careful with the sign) 53 = ____________ 6. Based on your answer above, Demand for EppiPencils would be considered: __________ (a) Perfectly Inelastic (b) Inelastic (c) Unit Elastic ((1) Elastic (e) Perfectly Elastic