A rise in the price of a smoothie from$2 to$3 results in a decrease in the quantity of smoothies demanded from 220 million to 180 million aday; and attoday's price of amuffin, $1.50, the quantity of muffins demanded increases from 80 million to 100 million a day.

1. Calculate the percentage change in the price of a smoothie and the percentage change in the quantity demanded of smoothies.

Hint: Use the average price and average quantity to calculate the percentage changes.

The price of a smoothie changes by ______ percent and the quantity demanded of smoothies changes by ______ percent.

2. Calculate the price elasticity of demand for smoothies.

The price elasticity of demand for smoothies is ______ (0.5 or 2).

3. Is the demand for smoothies elastic orinelastic?

The demand for smoothies is ______ (elastic or inelastic).