Question 1: The demand function of the peanut butter market is given as QD=40-2P, and the market equilibrium price is $101 (25%) I. II. III. IV. If the price increased to $11, compute the (point) elasticity at M Compute the arc elasticity between $10 and $1 1. If the price increased to $15, compute the (point) elasticity at $10, and the arc elasticity between $10 and $15. Is the point elasticity different from your previous answer? The average income of the neighborhood increased from $50,000 to $60,000. We observe the peanut butter sales dropped from 20 to 16 units. Compute the income elasticity of peanut butter. (When not specied, you should compute the point elasticity) What type of good is peanut butter given its income elasticity