For each of the following events, what would be the appropriate elasticity to compute? Using the midpoint method, compute this elasticity. What does your answer tell you?

a) When the price of theatre tickets is reduced from $14.00 to $11.00, ticket sales increase from 1,200 to 1,350.

b) As average household income in Canada increase by 10 percent, annual sales of Toyota Camrys increase from 56,000 to 67,000.

c) After major failure of Brazil's coffee crop sent coffee prices up from $3.00 per kilogram to $4.80 per kilogram, sales of tea in Canada increased from 7,500 kg per month to 8,000 kg per month.

d) An increase in the world demand for pulp (used in producing newsprint) increases the price by 14 percent. Annual Canadian production increases from 8 million tones to 11 million tones.