1. What is the price elasticity of demand when the price of a shirt was discounted 20% from P500 which resulted in a quantity demand increase from 5,000 units to 6,000 pieces. Solve up to 4 decimal places. Determine whether the price elasticity of demand is elastic or inelastic.

2. Assume that a consumer's budget/income is P100 and he can buy two goods, hopia and oranges. If the price of hopiais 10 pesos and the price of orange is 25 pesos, and the consumer decides to buy 3 pieces of oranges, how many pieces of hopia would he buy so his consumption will fall in a budget line? Use one decimal place and do not round off.