1.In the article titled "RED CROSS RAISES PRICES", the author notes that the price per unit of blood will rise 10-35%.Assume that Red Cross raises its prices overall by 15% and, on average, the percent change in the quantity demanded by hospitals decreases by 20%.What would be the price elasticity of demand for the American Red Cross blood supply?(Show calculations).

2.Explain why the demand for blood in general is likely to be inelastic, but that the demand for the blood from a particular source (like the Red Cross) might be elastic.

3.In the past, some independent for-profit blood centers have accused the Red Cross of undercutting their prices in an attempt to dominate the market, an accusation the Red Cross vehemently denies.If this were true, and the Red Cross was engaged in a market-domination strategy, what would this imply about the price elasticity of demand for blood?