"Brewers big and small vie for piece of growing cider market" (Sagan, A. Vancouver Sun Newspaper, Thursday, May 12, 2016, p. D3).

"This year's third annual craft cider week in Ontario will include the grand opening of a bar that pays homage to the fruit-based alcoholic beverage by offering more than 80 different types of cider." Suppose that marketing surveys show that at $7.50 we would sell 10,000 bottles while at $5.50 we would sell 20,000 bottles. P = 9.50 - 0.0020 [Q_d] per Bottle.

i.Given the information provided above,(1)Determining theSLOPEANDVERTICALINTERCEPT for theINVERSEDemand curve and then,(2)Write out the "general"INVERSEDemand curve AND theNORMALDemand Curve.

ii.Using the NORMAL Demand curve above,(1)Determine the Quantity Demanded, Q_din bottles, if the Price, P is increased from $6.00 per bottle to $7.00 per bottle,AND;(2)Determine thePrice Elasticity of Demandover the "ARC" of this increase in Price from $6.00 to $7.00 per bottle,ANDfinally,(3)Carefully interpret EACH of the calculated measure ofRELATIONSHIPand of theRESPONSIVENESSof this Price Elasticity of Demand.