Hello, there are two questions in this post. Question 2 is related to question 1. Can you please show me the work you did to calculate the answer so I am able to understand the answer?

QUESTION 1:

Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the southwestern region, your elasticity is -2.76. In your upper-western region, your elasticity is -3.50. In your New England region, the elasticity is -5.76. Use %Qd/%P = e to estimate the percentage change in quantity demanded if you were to raise prices in all three regions by 7%. a. %Qd Southwestern - b. %Qd Upper-western - c. %Qd New England -

Follow up question related to question 1:

QUESTION 2: Given the above predicted changes in quantity demanded by region, use the stay even analysis %Qd = %P/(%P +margin): Can you raise prices by 7% in any of the regional markets? State your conclusion and then show the all the steps supporting your conclusion. Note: Assume from problem 3 on Problem Set 1 that the optimal prices by region are: Southwest region $311; Upper West region $278; and Northeast $240.