Perform Questions #2, 3 & 4 on page 103 as well as Problems #4 on page 104 in Essentials of Economicstextbook by Brue, McConnell and Flynn.

2. Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and $600 when the price is set at $20 per basketball. Without using the midpoint formula, can you tell whether demand is elastic, inelastic, or unit-elastic over this price range? (LO2)

3. What are the major determinants of price elasticity of demand? Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic: (a) bottled water; (b) toothpaste; (c) Crest toothpaste; (d) ketchup; (e) diamond bracelets; (f) Microsoft's Windows operating system. (LO1)

4. What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space? How might this rule affect room rates? (LO1)

Problem#4: Danny "Dimes" Donahue is a neighborhood's 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.50 each, he sells 100. At a price of $1.00 each, he sells 300. Is demand elastic or inelastic over this price range? If demand had the same elasticity for a price decline from $1.00 to $0.50 as it does for the decline from $1.50 to $1.00, would cutting the price from $1.00 to $0.50 increase or decrease Danny's total revenue? (LO2)

(Don't forget to use graph if needed)

Also, watch this videoBeyonce - Irreplaceableand tell me, what is Beyonce's elasticity for her boyfriend in this video?