1. Effectively read the following problems presented below and determine the Price Elasticity of Demand (PED) of the following: show your calculations as part of your answers. Apply the formula provided below. PED = % A in Qd / % A in P= ((Qd, - Qd, / Qd,) * (100) / (P2 -P, / PI) * (100)) 1la. When the price of shoes decreases from 20 OR to 15 OR, the quantity demanded for shoes increases from 10,000 to 15,000 pairs of shoes. What is the price elasticity of the shoes? Solutions: Calculating a Percentage (Normal calculation). Step 1: (3) Step 2: (2) Step 3: (2)1 1b. If the demand (Qd) for peanut butter (good X) increased by 5% when the price (P) of strawberry jam (good Y) increased 6%. Find the implied cross price elasticity of demand for both substitute goods. (3) Apply the formula below. Cross elasticity of demand (Xe)= % A in Quantity demanded for good X / % A of price for good Y 11c. Why do business people need to know the importance of price elasticity of demand for the products they sell in the market? (4)