business. 1. Last week. Cal sold an average of 4,000 gallons per day at an average price of $2.749 per gallon. This week he raised the average price by 1 cent to $2.759 per gallon, and both revenues and profits dropped. His station is now selling an average of 3,600 gallons per day. Fixed costs of operating the gas station are $250 per day. Answer question 1 below Quantity Price 4000 2.749 3600 2.759 Average Average 3800 2.754 % change change Elasticity of Demand What is the price elasticity of demand? Can the demand be characterized as price elastic. price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? (Profits are revenue minus all costs.) Elasticity: Select One By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? Gallons sold per Price Revenue ipricex gallons) Cost per Gallon Variable Cost (cast per unit x volume) $10,596.00 Fixed cost per day Total Cost (Fixed Variable) Daily Profit revenue-all costs) $ S 10,996.00 $ 2.649 $ 250.00 $ 10,846.00S 150.00 4000 3600S 2.749 2.759 Answer question 2 hel Supply and Demand Graph Profit Maximization 98% 10:51 AM 10//2019