Problem Solving: 1. Yesterday, the price of pizza was Php100 a box, and Michelle was willing to buy 10 boxes. Today, the price has gone up to Php150 a box, and Michelle is now willing to buy 8 boxes. Is Michelle's demand for pizza elastic or inelastic? What is Michelle's elasticity of demand? 2. If Josephine's elasticity of demand for fries is constantly 9%, and he buys 4 fries when the price is Php50 per hotdog, how many will he buy when the price is Php25 per order? 3. Paula sells cookies for Php4 a piece. She sells 50 pieces, and decides that she can charge more. She raises the price to Php6 per piece and sells 40 pieces. What is the elasticity of demand? Assuming that the elasticity of demand is constant, how many would sell if the price were Php10 per piece? 4. The following is the demand schedule for waffles. Price Quantity Demanded Php140 2 Php120 6 Php100 10 Php80 14 Php60 18 Php40 22 Php20 26 a) Calculate the arc elasticity coefficient as price decreases from Php120 to Php100, Php80 to Php60, and Php60 to Php40. b) What happens to the coefficient of elasticity as Price decreases along the demand curve? c) What happens to TR as Price decreases? d) Explain the relationship between P, TR, and elasticity