I. Solve the following problems. 1. A newly opened movie theater at Walter Mart sells their ticket for only P100.00 for the past few months and gathered around 50,000 audiences. As they have grown larger in the market, they put their prices up from P100.00 apiece to P150.00. They then performed another survey and it says that there are only 35,000 audiences that month. Compute and identify the degree of elasticity. 2. WTimba and WWopened a sari-sari store in their barangay and found out that there is a high amount of demand in their products, especially their homemade mm candy. They have 50 buyers a day for the month of September at the price of P10.00 each. They increased their prices promptly to P15.00 per piece. After a month, the demand for the moandy decreased to only 40 buyers for the month of October. What is the elasticity of the mthey sell? 3. Mr. Wwants to know the elasticity of his product. During the month of January, he sells his product for only P40.00 and gathered 200 buyers. He then changed the price to P60.00 and gathered only 125 buyers. Help Mr. Wget the elasticity of his product. As explained above, elasticity is the amount or degree of how much quantity demanded is affected by the change in price. Thus, elasticity is given by: % A QB %AP 51:) = Where: Ep = Elasticity % A QB = Percentage change in Quantity Demanded % A P = Percentage change in Price or 2 1 . _ _Ql_ 53' ' P2 P1 P1 Where: E3) = Elasticity Q2 = New quantity of demand Q1 = Original quantity of demand P2 = New price P1 = Original Price Example: Mr. Yami Wis a businessman who owns Black Bulls Energy Drink Corporation. He is planning to increase the price of his product from P 60.00 to P 80.00. After the price changes, he observed that the quantity demanded from 1150 dropped to only 550. Compute for the elasticity and identify the degree. Substitute the variables in the formula with the data from the problem: 539 = ? Q2 = 550 Q1 = 1150 P2 = P 80.00 P1 = P 60.00 550 510150 _ 11 E\" _ 30 60 60 0.52 Ep = = 1.57 0.33