II|. COMPUTATION 1. Complete the production possibilities model between the hamburger and the pencil case TYPE OF PRODUCTION ALTERNATIVES PRODUCT ____E-_ HAMBURGER ___ ____ 2. The price of cigarettes is 1.10 a pack and the quantity demanded is 1.44 billion packs a month. Then the price falls to $1 per pack and the quantity demanded rises to 1.5 billion packs. Calculate the own price elasticity. Show solution 3. Amazon originally priced at 79/Vear had 25 million subscribers. If amazon raise the price by 20, subscription would fall by 42% to 14.5 million. Compute for its own price elasticity of demand. Show computation 4. The south beach caf recently reduced appetizer prices from 12 to 10 for afternoon early bird customers and enjoyed a resulting increase in sales from 90 to 150 per day. Beverage sales also increased from 300 to 600 units per day. i. Calculate the arc price elasticity of demand for appetizers ii. Calculate the arc cross-price elasticity of demand between average sales and appetizer prices 5. The demand for a LV bag increased by 20% after a 50% increase in income. Compute for the YED. Explain the number that you obtained. 6. Given: Budget 40 USD for food for 5 days Scenario 1: Potato cost is 2 and hamburger is 10 Scenario 2: Potato cost is 4 and hamburger is 10 Scenario 3: Potato cost is 4.50 and hamburger is 10 Compute for the quantity demanded for each scenario and the expenditure