Problem to solve:

You own a hot dog stand that you set up outside the student union every day at lunchtime. Currently, you are selling hot dogs for a price of $3 each, and you sell 30 hot dog a day. You are considering cutting the price to $2. The following graph shows two possible increases in Quantity sold as a result of your price cut. Use the information in the graph to calculate the price elasticity of demand between these two prices on each of the demand curves. Use the midpoint formula to calculate the price elasticity.