Solve for the elasticities for each item.

1.Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As a result, the quantity of their product sold went from 700 bikes to 500 bikes. Compute for the price elasticity of demand. Indicate whether the product's demand is elastic or inelastic.

2.Miko is a collector of matchbox cars. He used to buy five (5) cars every payday. However, when his income was raised from P17,000 to P20,000, he started to buy 10 cars. What is the income elasticity of demand?