2. The price elasticity of demand for personal computers is estimated to be -2.2. If the price of personal computers declines by 20 percent, what will be the expected per- centage increase in the quantity of computers sold? 3. The OIde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $135. As a result, the rm's daily sales of these sundaes have increased from 1,500 per day to 1,300 per day. Compute the arc price elasticity of demand over this price and consumption quantity range. 4. The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result. the transit authority notes a decline in rider- ship of 30 percent. Compute the price elasticity of demand for subway rides. a. If the transit authority reduces the fare back to 50 cents. what impact would you expect on the ridership? Why? 5. If the marginal revenue from a product is $15 and the price elasticity of demand is -1.2, what is the price of the product