A)Demand schedule for a book

Price ($)

Quantity demanded (Income=$10,000)

Quantity Demanded

(Income - $12,000)

8

40

50

10

32

45

12

24

30

14

16

20

16

8

12

i.Calculate price elasticity of demand as the price of book increases from $8 to $10 if (1) your income is $10,000, and (2) your income is $12,000.

ii.Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (1) the price is $12, and (2) the price is $16.

B)According to Duffy-Deno (2003), when the price of broadband access capacity (the amount of information one can send over an internet connection) increases 10%, commercial customers buy about 3.8% less capacity. What is the elasticity of demand for broadband access capacity for these firms? Is the demand at the current price inelastic?