Question 2 Question 3 Yesterday. the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Use the following information to compute own-price, income, and cross-price elasticity of Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes. demand for propane heaters =) What is Julie's elasticity of demand? Price Quantity Demanded Income (5000) Heat Pump Price $100 1000 20 $4000 $200 2000 30 $2000 $300 1500 30 $4000 $400 2500 30 $5000 3) Calculate price elasticity of demand for propane heaters when price decrease from $300 to $200. b) Is Julie's demand for envelopes elastic or inelastic? c) To have total revenue increases, should she decrease the price of the envelopes? Why or why not?bj If price increase from $8 to $10, calculate the price elasticity of supply compact discs. BAFB1023 MICROECONOMICS TOPIC 3 ELASTICITY Question 1 Suppose the demand schedule for compact discs is as follows: Price Quantity Demanded Quantity Supplied 40 20 10 35 30 12 24 45 14 18 50 3, if price increase from $8 to $10, calculate the price elasticity of demand compact discs.bj Calculate income elasticity of demand for propane heaters when income increases from $20.000 to $30,000. C) Calculate cross elasticity of demand for propane heaters when price decrease from $300 to $200