2)

• The price of strawberries falls from $1.50 to $1.00 per carton and quantity demanded goes from 100,000 to 200,000. Use the mid point formula to find price elasticity of demand
• The price elasticity for 4,000 movie tickets at a price of $5 is 1.0. Using the mid point formula calculate the percentage by which theater owners must reduce price in order to sell 5,000 tickets.
• The price elasticity of demand for ice cream cones is 1.2 at a current price of .50 cents; consumption is 100,000 cones. Calculate the change in quantity demanded when prices rise by .05 cents