Elsa Corporation, a company that manufactures and markets low-end table computers, asked our friend Ms. Market Researcher to create the demand curve for its SD 721 model. She conducted some market research and gave Elsa the demand curve as well as some additional information: 350,000 units of SD 721 will sell at a price of $250. (1) What is the point price elasticity if 500,000 units will sell at a price of $200? the percentage change in quantity demanded: [(500,000 - 350,000) / 350,000] * 100 = 42.86% the percentage change in price: [($200 - $250) / $250] * 100 = -20% (2) What is the point price elasticity if 125,000 units will sell at a price of $305? ((QN - QI) / (QN + QI) / 2)) / ((PN - PI) / (PN + PI) / 2)) QN = New quantity QI = Initial quantity PN = New price PI = Initial price