QUESTION 1 1.1. Use the following graph to calculate the price elasticity of demand from P1 to P2 and state whether the elasticity of the demand is elastic, inelastic or unit elastic. (5) P1=7-... 01=40 Q1=75 1.2. A cinema charges R8 per ticket for evening screenings and sells 250 tickets on a night on average. The estimated price elasticity of demand for tickets is -1.6. Find the quantity of tickets sold per night if the priced is reduced to R7. (5) 1.3. The average income of a firm's customers increases from R1000 per week to R2000 per week, and the quantity demanded of the firm's product goes from 15000 units to 16000 units. Calculate the income elasticity of demand and state whether the good is a normal or inferior good. (5) 1.4. If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, what is the cross elasticity and are the two goods substitutes or complements or unrelated. (2) 1.5. In a small village in Malawi, there are 100 small dairy farmers who sell milk to the residents in the village. The supply function of milk by each dairy farmer is given by ?s=-2+2? where ?s represents the quantity milk of supplied in liters and ? is the price of