1. Sally Sells Sea Shells by the Sea Shore and collects all sales data. Now, she is curious to find out the elasticity of demand for her shells. Assume they are all the same type and quantity. She scatter plots the data and finds there is a linear relationship that looks ripe for a regression estimation of the price response function for her shells. The slope of her regression line is 62. Her average daily price is 8.75, and she sells 71 quantities at that price. Calculate the point elasticity of demand for her sea shells.

2. A seller believes he is pricing optimally. Her current unit margin rate is 20 percent. What must the actual price elasticity of demand equal if she is right?