Economists use elasticity to analyze the demand for a product produced by an individual company.. A bus system determines that the demand for a riders a p cents per ride is given by 9 = 2000 100- p 10. Write point elasticity as a function of price. 11. Determine the price elasticity of the current 75-cent fare. 12. Should the price be raised or lowered to increase revenue? Why? 13. Use elasticity analysis to determine the price that should be charged to maximize revenue. Economists also use elasticity to analyze the demand a particular product in the overall market. Consider the following scenario: Suppose that demand for consumption of cigarettes in the US can be modeled by -0.73 q = 4.5p -- where p is the price of cigarettes and q is the quantity demanded in millions. 14. Find the point elasticity of demand as a function of the price. 15. What can you conclude about the elasticity at every price level? 16. What can you conclude about the market for cigarettes based on the elasticity analysis? 17. What keeps individual cigarette producers from raising their prices to increase revenue? 18. Give an example of another product in the US economy that might have inelastic demand. Explain why? 19. Give an example of a product in the US economy that might have elastic demand. Explain why? Economists use elasticity to analyze the demand for a product produced by an individual company.. A bus system determines that the demand for a riders a p cents per ride is given by 9 = 2000 100- p 10. Write point elasticity as a function of price. 11. Determine the price elasticity of the current 75-cent fare. 12. Should the price be raised or lowered to increase revenue? Why? 13. Use elasticity analysis to determine the price that should be charged to maximize revenue. Economists also use elasticity to analyze the demand a particular product in the overall market. Consider the following scenario: Suppose that demand for consumption of cigarettes in the US can be modeled by -0.73 q = 4.5p -- where p is the price of cigarettes and q is the quantity demanded in millions. 14. Find the point elasticity of demand as a function of the price. 15. What can you conclude about the elasticity at every price level? 16. What can you conclude about the market for cigarettes based on the elasticity analysis? 17. What keeps individual cigarette producers from raising their prices to increase revenue? 18. Give an example of another product in the US economy that might have inelastic demand. Explain why? 19. Give an example of a product in the US economy that might have elastic demand. Explain why