a) Would you expect the overall demand curve for Gollum's Precioussss Guide Services to be elastic or inelastic, just based on the information you have been given about the firm? Why? Use the appropriate economic concepts to explain-but don't use the data or do any math calculations. Draw the overall demand curve for Gollum's Precioussss Guide Services according to your expectation based on the non-numeric information given in the first sentence of Part 4. b) Using the point elasticity formula, what is the Ed of Gollum's changing his price from $25.00 to $75.00? From $75.00 to $25.00? How would you classify these Ed? c) Using the arc elasticity formula, what is the Ed of Gollum's changing his price from $325.00 to $375.00? How would you classify this Ed?d} a) Q} h) ll Which of the two price increases [from $25 to $?5 or $325 to $3?5} would increase revenue for Gollum? Explain why in terms of elasticity. Show Gollum's total revenues at even: price level. Graph |Gollum's demand curve {precisely}. Calculate the elasticity for every price change using the arc elasticity formula. Indicate on the graph what part of the curve is elastic and what part of the curve is inelastic and show all Ed between every point. Show the unitary elastic point. Be precise and use the numbers. Hint: better to use graph paper for this question and next. Using the revenues in d) and the graph in e}. calculate marginal revenue and draw {precisely} the marginal revenue curve. Show precise numbers and precisely where the marginal revenue curve crosses the X axis. (Hint: plot values to quantities} Draw the elastic, inelastic. perfectly elastic, perfectly inelastic. unit elastic demand and suggly curves. Show the coefficients of price elasticity Ed for each type of curve. |Gollum's income goes up from stoop to $12. His consumption of sh goes up from 2D to 22. Calculate Gollum's income elasticity E; for sh using the arc formula. ls sh a normal or inferior good for Gollum? How would you classify Gollum's Ey elastic. inelastic or unitary elastic\"? When Gollum's income went up in part h}, his consumption of fried taters went from 2D to 1D. Calculate Gollum's income elasticity E, for fried taters using the arc formula. ls fried taters a normal or inferior good for Gollum? How would you classify Gollum's Elyelastic, inelastic or unitary elastic? When the price of worms goes up from $1 to $2, the quantity of sh that |Gollum consumes goes from 2D to 25. Calculate Gollum's cross-elasticity Eab for sh and worms using the arc formula. What type of relationship exists between sh and worms? How would you classify Gollum's Eat. elastic. inelastic or unitary elastic? k) When the price of worms goes up from $1 to $2, the quantity of ketchup that Gollum consumes goes from 3 to 1. Calculate Gollum's cross-elasticity Eab for ketchup and worms using the arc formula. What type of relationship exists between ketchup and worms? How would you classify Gollum's Eab-elastic, inelastic or unitary elastic? And when he said gollum he made a horrible swallowing noise in his throat. That is how he got his name, though he always called himself 'my precious.' DVD TOWN