1. Suppose the price of gasoline in July 2018 averaged $1.35 a gallon and 15 million gallons a day were sold. In October 2018, the price averaged $2.15 a gallon and 14 million gallons were sold. If the demand for gasoline did not shift between these two months, use the midpoint formula to calculate the price elasticity of demand. Indicate whether demand was elastic or inelastic.

2.Suppose that at a price of $55,100 units were sold while at a price of $33,153 units were sold. Without calculating the price elasticity value, can you determine whether it is elastic, unit elastic, or inelastic? Explain your answer.

3.John was discussing the market for cocoa beans with his friend Kim. John said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is John right? Briefly explain why or why not.