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2. (8 points) Boston, Massachusetts has 10 times as many residents as Somerville, Massachusetts, but the residents in both cities are similar (Somerville is a

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2. (8 points) Boston, Massachusetts has 10 times as many residents as Somerville, Massachusetts, but the residents in both cities are similar (Somerville is a nearby suburb on Boston). In particular, residents of both cities are New Eng- land Patriots football fans. You have estimated that the demand in Boston for Patriots insignia t-shirts (shirts with a Patriots logo) is QD = 4, 000 - 100P and the demand is Somerville is QD = 400 - 10P. That is, for the same price, demand in Boston is 10 times higher. (a) What is the price elasticity of demand at $20 in each city? (b) In which city is the price elasticity of demand higher, Boston or Somerville? Explain

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