Answer all parts to questions A, B, and C; which are about the elasticity concepts covered.

1. When the price of pencils decreases from $3 to $1, the quantity demanded increases from 100 to 200 pencils. Using the midpoint method, compute the price elasticity of demand. Interpret the elasticity.
2. What would expect is the price elasticity of demand for open-heart surgery, for people with series of heart problems? Why?
3. As part of a learning-in-action grant, the UIS economics majors own and operate a kiosk in the Union that sells T-shirts to other students.The majors get graded on the performance of the business and also get to keep some of the profits.The students presented a proposal to their faculty advisor that argued that a price cut on the T-shirts would help their business. Their advisor disagrees claiming that revenues will fall and hurt them.What are the students and the Professor thinking? Do you agree with the students or the Professor? Why?