1. (5 points) Price (S) 20 18 16 14 B D Quantity a1 11that is the noire alasticitur Consider the graph given above (a) What is the price elasticity of demand at point A? Please show your calculations. (b) What is the arc elasticity of demand between point A and point B? Please show your calculations. Price Price elasticity at a point is slope X Quantity (( Q2 + 9,) /2) Arc Price elasticity = P2 - P1 (( P2 + P1 ) / 2) (For Arc elasticity see the above formula and the formula on page 83 in "Inside Business 3-2)