Question 1: The demand function of the peanut butter market is given as QD=40-2P, and the market equilibrium price is $10. (25%) I. If the price increased to $11, compute the (point) elasticity at E II. Compute the arc elasticity between $10 and $11. III. 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? IV. 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} V. What type of good is peanut butter given its income elasticity