2. The demand for gasoline is Q = 20 2p, where Q is the number of gallons of gaso- line and p is the price per gallon of gasoline. If p = $3.5,

a) Is Is demand elastic/inelastic?

b) Will a 15% increase in price cause revenue to increase or decrease? How will the demand of items react to such price increase?

4. Assume the demand for toilet papers is

Q = 5000 4p where Q is the number of

packs of toilet papers and p is the price per of pack of toilet papers. If the current price of

a of pack of toilet papers is $20.50,

a) Is demand elastic/inelastic?

b) Will a 10% increase in price cause revenue to increase or decrease?

4. The price p and the supply x in pounds of almonds are modeled by

x = 5, 600p + 10 3, 000

If the current price of $2.25 per pound of almonds is increasing at a rate of $0.20 per week,

how would the amount of pounds of almonds change?

A: 160 pounds per week