c) The owner of a souvenir shop wanted to see if there is a relation between the sales of T-shirts and of the key-chains if he increases the price of T-shirts. He founds the below observations: Price of T-shirt in $ 6 7 Quantity of T-shirts 1600 800 Quantity of Key-chains 2000 3000 Calculate the proper elasticity and conclude for the type of relationship these goods have. Problem 3 Pick's is a small ice cream shop that sells in a university town. They own three ice-cream machines. The other inputs are a refrigerator, a mixer, cups, sprinkle toppings and of course workers. He estimates. He estimates that his daily production function when he varies the number of workers employed is as shown in the accompanying table: Marginal Product (MP) Quantity of Labor 0 1 2 3 4 5 6 Quantity of ice-cream 0 110 200 270 300 320 330