Elasticity Assignment Must incorporate all formulas and calculations must he clearly shown. Also state for each question whether the answer is Elastic, inelastic or unitary. 1. A ferry company reduces fares from $1.00 to 90 cents. Daily demand for tickets rises from 10,000 to 12,000. Calculate the price elasticity of demand. (3 marks) 2. The price of a product rises from $1.00 to 1:50. This leads to a fall in the quantity demanded from 1000 to 800 units. Calculate the price elasticity of demand for the product. (3 marks) 3. A retailer is desperate to increase his sales of telephone cards so he decides to reduce the price from $10 to $5. He is successful in increasing sales. The sales figures shows that sales move from 15 units to 25 units of telephone cards. Calculate the price elasticity of demand for the telephone cards. (3 marks) 4. A rise in the price of rice in a country from $1.00 per bag to $1.20 per bag leads to an increase in the quantity supplied by farmers from 1000 bags per month to 1300 bags per month. Calculate the price elasticity of supply