Please solve the second image (Number 1 and Number 3, not number 2). *First Image is considered as homework 2; you do not need to solve the first image, but you will need the first image to solve the second image ("Consider the demand curve" one). *Please tell me whether my answers are right or wrong: Number 1: -0.11 (inelastic), 1 (unit elastic), 9 (elastic), Number 3: -0.09 (more elastic), 0.71 (less elastic), 3 (less elastic)

1. Consider the demand curve from homework 2 (the original one of parts a-c). Calculate the elasticity of demand as the price goes from a. zero to 52. b. $4 to $6 c $8 to 510 using the midpoint formula in each case. ls demand elastic, inelastic or unit elastic in each case? 2. Calculate total revenue at each of the midpoint prices of each interval and confirm that revenue behaves in the way described in class. 3. Now repeat (1) with the shifted demand curve from part d. How have the elasticities changed at each price interval? Has demand gotten more or less elastic? Does that make sense intuitively? In Merageville, if the price of gasoline is zero, daily quantity demanded is 1000 gallons. For every increase in price of 10 cents, daily quantity demanded drops by 10 gallons. At a price of zero, quantity supplied is zero, but for every increase in price of 10 cents, quantity supplied increases by 15 gallons. Draw a picture of supply and demand for gasoline, and demonstrate your answers to the questions below on this graph. a. If the current price is $1.00 Igallon, will there be a shortage or surplus, or an equilibrium in the gasoline market? How many gallons are traded in the market? What kind of line will you see at the gas station? What trend will we expect to see in price and quantity? b. If the current price is $6.00] gallon, will there be a shortage or surplus, or an equilibrium in the gasoline market? How many gallons are traded in the market? What kind of line will you see at the gas station? What trend will we expect to see in price and quantity? c. If the current price is $4.00/ gallon, will there be a shortage or surplus, or an equilibrium in the gasoline market? How many gallons are traded in the market? What kind of line will you see at the gas station? What trend will we expect to see in price and quantity? d. When vacation time comes around, the quantity demanded at any price increases by 200 gallons. Draw a new graph, showing the supply curve, and both the old and new demand curves. Show how the equilibrium price and quantity have changed. You do not have to figure out exactly what the new equilibrium is, merely show in what direction they have changed. Do these changes make intuitive sense, given the change in peoples' desire for gasoline