1. Kind of Blue jeans. Two years ago, Kind of Blue jeans were priced at $72 and 121,000 units were sold. Last year, the price was lowered to $68 and sales increased to 142,000.

(a) Estimate the value of the demand elasticity.

(b) Based on your estimate of the demand elasticity, how many units would you expect to be sold if price were lowered by an additional $1?

(c) Suppose that in the same period, singer Taylor Swift started using Kind of Blue jeans in her concerts, leading to a higher demand for this brand. What effect would this have on the estimate for elasticity in part (a)? Would this change your answer to part (b)?