ECONOMICS

1. Gosher has made some changes over the last year, hoping to increase total revenues generated. Specifically, Gosher increased the price of their pencils and decreased the price of their pens. However, Gosher has seen total revenues actually go down. Given the information in the table below, complete the following:

• Calculate the price elasticity of demand for pencils and pens.
• Interpret the price elasticity of demand for pencils and pens.
• Indicate if the demand for pencils is price elastic, inelastic, or unit.
• Indicate if the demand for pens is price elastic, inelastic, or unit.

\fRound these answers to the nearest whole number Round these answers to the nearest penny Price of Number of Labor Total Total Output Workers per Variable Fixed Total Average Average |Average (Pens Employed Worker Cost of Costs Cost per Price per Total Variable Fixed Total Marginal Marginal Produced per Day per Day Labor per Day Day Pen Revenue Profit Cost Cost Cost Cost Revenue 0 $560 50.00 $500 $500 $3.50 50.00 -$500 1,000 15 $560 $8.400 $500 $8,900 53.50 $3 500 -$5 400 58.40 50.50 $8.90 $8.40 $3.50 2.700 30 $560 $16,800 $500 $17,300 $3.50 $9.450 -$7 850 $6.22 $0.19 $6.41 $4.94 $3.50 5.100 45 $560 $25 200 $500 $25.700 $3.50 $17.850 -$7 850 $4.94 50,10 $5.04 $3.50 $3.50 7,900 60 $560 533.600 $500 $34 100 $3.50 $27.650 -$6,450 $4.25 50.06 54.32 $3.00 53.50 12.000 75 $560 $42.000 $500 $42.500 $3.50 $42,000 -$500 $3.50 50.04 $3.54 $2 05 53.50 15,700 90 $560 $50,400 $500 $50.900 $3.50 $54,950 $4.050 $3.21 50.03 $3.24 $2 27 $3.50 18, 100 105 $560 558,800 $500 $59.300 $3.50 $63,350 $4 050 $3.25 50.02 $3.28 $3.50 $3.50 20,300 120 $560 567 200 $500 $67.700 53.50 $71,050 $3.350 $3.31 50.02 $3.33 $3.82 $3.50 21,900 135 $560 $75,600 $500 $76.100 $3.50 $76,650 $550 $3.45 50.02 $3.47 $5.25 $3.50 22,300 150 $560 $84,000 $500 $84 500 $3.50 $78,050 -$6.450 $3.77 50.02 $3.79 $21.00 $3.50 22,300 165 $560 592,400 $500 $92 900 $3.50 $78,050 -$14,850 54.14 50.02 54.17 50.00 $3.50 21,500 180 $560 $100,800 $500 $101,300 $3.50 $75,250 -$26,050 54.69 50.02 54.71 5-10.50 $3.50