1.During December 2019, suppose that the price of a yule log at your local grocery store was $30. For this coming December, assume the price of a yule log at your local grocery store will be $40.The grocer's manager informs you that 1500 logs were sold last December when the price was $30.She expects 1200 logs to be sold this coming December.Assuming she is correct:

• Calculate the price elasticity of demand (point formula, not midpoint/arc formulaconsult the textbook).Based solely on your calculation, is the demand relatively elastic or relatively inelastic?

• Is this a change in demand or a change in the quantity demanded?Answer definitively and explain in a few sentences.