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The following table gives the demand schedule for the The Greasy Spoon, a cafe shop in the Piccadilly circus Price Qunatity demanded 7 15 6

The following table gives the demand schedule for the The Greasy Spoon, a cafe shop in the Piccadilly circus

PriceQunatity demanded
715
630
545
460
375
290
1105
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() Currently the firm charges $4 for its cheeseburgers. When the firm decreases the price of their cheeseburgers from 64 to $3, the number of daily sales increases from 60 to 75. Calculate the price elasticity of demand (show all your calculations) (4 marks) () Is demand elastic, unit-elastic, or inelastic? Explain why

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