Assume the price of a dress shirt was put on sale "buy one get one free". The original price was $100.00 per shirt. The sale resulted in an increase of quantity sold in the same store for the same period of time from 200 shirts to 800 shirts.

(a) Calculate the price elasticity of demand and interpret your results.

(b) If the price of the shirt is further reduced by 10%, what will happen to the quantity sold?

Show your work