In this assignment, you will analyze the price elasticity of demand for soft drinks using a real$-$world scenario. You will calculate the price elasticity of demand to determine the responsiveness of consumer demand to changes in price. By the end of this assignment, you will have a better understanding of how price changes affect sales and the elasticity of demand.InstructionsIntroductionProvide a brief overview of the concept of price elasticity of demand and its significance in understanding consumer behavior.Explain the relationship between price changes and consumer demand, and how elasticity measures this relationship.Scenario AnalysisPresent the given scenario where the soft drink vending machine sells $4,000$ bottles per week at a price of $$3\mathrm{.}50$ per bottle.Explain the decision to decrease the price to $$2\mathrm{.}50,$ resulting in an increase in sales to $5,000$ bottles per week.Calculation of Price Elasticity of DemandExplain the formula to calculate price elasticity of demand $($PED$).$Calculate the percentage change in quantity demanded using the initial and final quantities $(4,000$ bottles to $5,000$ bottles$).$Calculate the percentage change in price using the initial and final prices $($$$3\mathrm{.}50$ to $$2\mathrm{.}50).$Apply the values to the PED formula and calculate the price elasticity of demand.Interpretation of Price Elasticity of DemandDiscuss the interpretation of price elasticity of demand values.Analyze the calculated PED value and determine whether demand is elastic, inelastic, or unitary elastic.Interpret the elasticity value in terms of the responsiveness of demand to price changes.Implications and DiscussionDiscuss the implications of the price elasticity of demand calculation for the soft drink vending machine.Analyze the potential impact of the price decrease on revenue and profitability.Discuss the potential benefits and drawbacks of adjusting prices to influence consumer demand.ConclusionSummarize the key points discussed in the assignment.Emphasize the importance of understanding price elasticity of demand in making pricing decisions.Reflect on the significance of elasticity in evaluating the impact of price changes on consumer behavior and sales.