1. For the purpose of this practice assignment, assume elasticity of .75.

Use the price elasticity in your answer to question 1 to answer the following questions:

2.(1 point) If the price of the product falls by 5%, what will be the resulting percentage change in the quantity demanded?Show your work.

3.(1 point) In question 2, does total revenue rise or fall as a result of the 5% price decrease?Explain briefly.

4.(1 point) If the price of the product rises by 7%, what will be the resulting percentage change in quantity demanded?Show your work.

5.(1 point) In question 5, does total revenue rise or fall as a result of the 7% price increase?Show your work.