Given the following market data for shoes:

Level	Price	Quantity Demanded when M = $600	Quantity Demanded when M = $800
A	10	850	900
B	20	700	775
C	30	550	650
D	40	400	525
E	50	250	400
F	60	100	275
G	70	0	150

1. Using the arc elasticity formula (mid-point formula), the price elasticity of demand between Levels C and D when income is at $600 is

A. 1.15 elastic	C. 0.85 inelastic
B. 1.25 elastic	D. 0.95 inelastic

1. To maximize revenue when M = $600, the seller should price the shoes at

A. &20	C. $40
B. $30	D. $50

1. Given the increase in consumer income M from $600 to $800, the income elasticity of demand at Level E is

A. 0.58 normal good and necessity	C. 1.62 normal good and luxury
B. 0.95 normal good and necessity	D. 3.27 normal good and luxury

1. Given the new income level of $800, if the seller wants to maximize revenue, the price should be

A. $50	C. $30
B. $60	D. $40

1. At the income level of $800, the price elasticity of demand between levels C and D is

A. 1.22 elastic	C. 0.44 inelastic
B. 0.74 inelastic	D. 2.04 elastic