P (S) GoodA 13 11 D Q (units) Use the above graph to answer the following questions. 1) What is the price elasticity of demand over the price range of 11 and 13? (use the midpoint method) (3 points) 100 -80 90 12 OIL DIN 11 - 13 = -1.33 12 2) Is the consumer elastic, inelastic or unit elastic? (2 points) This is considered elastic because its absolute value is larger than 1 3) Will a price increase from 11 to 13 result in an increase in revenue or a decrease in revenue? (1 point) 4) Given: Income elasticity of demand is +2, income increases by 5% and the price of the above good remains constant at $11. What will be the new quantity demanded by consumers? (4 points) 5) Draw in the appropriate curve on the above graph that represents the shift which results from the change in income. (2 points)