Figure: iPod Consumers $120 Regular Student 100 . .. . $100... 80 80 70 . .......". 60 70 80 50 120 155 Q A local electronics store sells ipods for $100 per unit. The manager who took a lesson from his economics course in college decides to offer a 20 percent discount to students who can present their current student ID at purchase. Given the demand curves for regular and student customers, answer the following questions. a. What will be the total revenue (dollars generated from iPod sales) for both groups of customers if the store offers the discount? $ b. For which group of customers is the demand more elastic? c. What is the elasticity of demand between the prices of $100 and $80 in the regular market? (Round to 2 decimal places.) d. What is the elasticity of demand between the prices of $100 and $80 in the student market? (Round to 2 decimal places.) e. If the manager increases the regular price of ipods to $120 and lowers the student discount price to $70, how much could the store increase total revenues? $Suppose that at a price of $4.20, the quantity of output demanded is 15, and at a price of $8.00, the quantity of output demanded is 7. What is the elasticity of demand? (Ignore the negative sign.) Answer:Suppose that at a price of $3.90, the quantity of output supplied by sellers is 9, and at a price of $5.20, the quantity of output supplied by sellers is 16. What is the elasticity of supply? Answer:Consider two markets: the market for prescription blood pressure medications and the market for Kraft Macaroni and Cheese. Which of these goods do you think has the more elastic demand? Explain your reasoning. G C Ff A Y ! B I U S X2 Xz E E E # - >