Gallons sold per day	Price	Revenue (price x gallons)	Cost per Gallon	Variable Cost (cost per unit x volume)	Fixed cost per day	Total Cost (Fixed + Variable)	Daily Profit (revenue - all costs)
4000	$ 2.749	$ 10,996.00	$ 2.649	$ 10,596.00	$ 250.00	$ 10,846.00	$ 150.00
3600	$ 2.759	$ 9,932.40	$ 2.649	$ 9,536.40	$ 250.00	$ 9,786.40	$ 146.00

2. After seeing your analysis, Cal decides to lower the price of gas to $2.739 per gallon. After this change, the volume sold increased to 4,400 gallons per day. He asks you to measure his business gains or losses as a result of this price change. Fixed costs are $250 per day.

What is the price elasticity of demand?

Can the demand be characterized as price elastic, price inelastic, or neither?

By how much did revenues increase or decrease as a result of the change in price?

By how much did profits increase or decline? (Profits are revenue minus all costs.)

Quantity	Price
Average	Average
% change	% change	Elasticity of Demand
Elasticity:	Select One
By how much did revenues increase or decrease as a result of the change in price?
By how much did profits increase or decline?
Gallons sold per day	Price	Revenue (price x gallons)	Cost per Gallon	Variable Cost (cost per unit x volume)	Fixed cost per day	Total Cost (Fixed + Variable)	Daily Profit (revenue - all costs)
3600
4400