. Answer the following:(hint ch 6)9 pts

a. Suppose Penn College raises its tuition from $3,000 to $3,500. As a result student enrollment drops from 5,000 to 4,000. Calculate the price elasticity of demand. Is demand elastic, unitary elastic or inelastic?

b. Suppose income elasticity of demand for furniture is 3.0 and the income elasticity of demand for physician services is 0.3. Compare the impact on furniture and physician services of a recession that reduces consumers' income by 10%

c. How might you determine whether Pepsi and Coke are in competition with each other?