Suppose you own a tax preparation services company, appropriately named "MYBA Services" (MYBA = 'Minimize Your Burden of Assessment') with fixed costs of $3,000/month and marginal costs of $25/appt.

If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760 appointments would be sold.

a.) Use these figures to calculate the price elasticity of demand for your services.

b.) Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt.

c.) Given these calculations, what price should you charge for your services, $50/appt or $60/appt? Explain.