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1. Suppose you own a bookstore where you currently sell 24 HarryPotteradventure novels per day at a price of $35 per book. However, if you

1. Suppose you own a bookstore where you currently sell 24 HarryPotteradventure novels per day at a price of $35 per book. However, if you were to reduce the price to $28, then you would sell 27 HarryPotteradventure novels per day. Using the midpoint formula, what is the price elasticity of demand for HarryPotteradventure novels?

2. Consider the market for 7up. Suppose the price of Sprite increases from $1.75 to $2.00 per 2litrebottle. As a result, the demand for 7up decreases from 293 to 284 2litrebottles. Using the midpoint formula, what is the cross-price elasticity of demand for 7up?

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