Please write neatly and be sure to show all your work. Please label graphs.

1. (7 points) In 2019, Arch Manufacturing sold 12.500 widgets and their revenues were $350,000.In 2020, Arch sold 12,000 widgets after raising their price 5%. Based on this information, please answer the following questions:

1. What was Arch's price in 2019?
2. What were Arch's revenues in 2020?
3. Calculate Arch's price elasticity using the interval elasticity formula.
4. Assuming this price elasticity is accurate, should Arch raise or lower the price of their widgets to increase revenues in 2021? Explain.
5. Suppose Arch conducted an econometric study at the end of 2021 and determined that the price elasticity for their product is -0.50.Using this information, if Arch raised their price 6% in 2022, what would be the percentage change in the number of widgets sold?