A. A retailer is selling 500 kitchen cabinets per month at 350 per cabinet. The price elasticity for the cabinets is 0.8. If there is 13% increase in price, how demand will change?

B. Suppose the demand curve for Apple is given by:

P = 500D 10

Calculate the elasticity of this demand function. What is the price elasticity of demand when the price is 30? What is the percent change in the demand if the price is 30 and increases by 4:5%?