Q-2 The Elasticity of Demand for Peanut Butter Peanut Butter Prices Rise 30 to 40 Percent Scott Karns, president and CEO of Karns Foods, said "People are still going to need it for their family. It's still an extremely economical item." Patty Nolan, who is on a fixed income, said "I love peanut butter so I'm using a little less so I don't go through it."The Data Quantity (millions of tons per Price (dollars per Year year) pound) 2011 350 2.00 2012 300 2.80 The Questions 1. Does the news clip imply that the demand for peanut butter is elastic or inelastic? 2. If the data are two points on the demand curve for peanut butter, what is the price elasticity of demand