Answer all 6 questions pls and make the answers clear thank u

14 Demand Elasticity PROBLEMS 1. The Acme Paper Company lowers its price of envelopes (1,000 count) from $6 to $5.40. If its sales increase by 20 percent following the price decrease, what is the elasticity coefficient? The demand function for a cola-type soft drink in general is Q = 20 - 2P, where Qstands for quantity and P stands for price. 3. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points? b. Calculate arc elasticity at the interval between P = 5 and P = 6. c. At which price would a change in price and quantity result in approximately no change in total revenue? Why? 3. ABC Sports, a store that sells various types of sports clothing and other sports items, is plan- ning to introduce a new design of Arizona Diamondbacks' baseball caps. A consultant has estimated the demand curve to be Q = 2,000 100P where Qis cap sales and Pis price. a. How many caps could ABC sell at $6 each? b. How much would the price have to be to sell 1,800 caps? c. Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free? d. At what price would no caps be sold? e. Calculate the point price elasticity of demand at a price of $6. The equation for a demand curve has been estimated to be Q = 100 lOP + 0.5 Y, where Qis quantity, Pis price, and Yis income. Assume P = 7 and Y = 50. a. Interpret the equation. b. At a price of 7, what is price elasticity? c. At an income level of 50, what is income elasticity? d. Now assume income is 70. What is the price elasticity at P = 8? Mr. Smith has the following demand equation for a certain product: Q = 30 - 2P. a. At a price of $7, what is the point elasticity? b. Between prices of $5 and $6, what is the arc elasticity? c. If the market is made up of 100 individuals with demand curves identical to Mr. Smith's, what will be the point and arc elasticity for the conditions specied in parts a and b? The Teenager Company makes and sells skateboards at an average price of $70 each. Dur- ing the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about 2.5. If it decreases the price to $63, what should be the quantity sold? Will revenue increase? Why