1. Bettys Bakery estimates that they can sell 400 cookies at .60 each; and will be able to sell 500 if the price drops to .50. Use the Midpoint formula to calculate the elasticity of demand for Betty' cookies. Will total Revenue rise or fall if the price of cookies were lowered. 2. If an automobile had an income elasticity of demand of 1.5; and another had an income elasticity equal to -0.3, what can you say about the 2 cars. What account for the difference? 3. After Brian's income increased for $12,000 to $18,000 his purchase of DVD's increase from 10 to 40 DVD's per year. Calculate Brigan's income elasticity. 4. AS the price of margarine rises by 20%, a manufacturer of baked goods increased its quantity of butter demanded by 5% calculate the cross price elasticity of demand. 5. Calculate the Price elasticity of demand between situations A and B. Us the Total Revenue Test to verify your answer.