The old price is 10. The new price is 12. Demand under the old price was 200. Demand under the new price is 150. Calculate the percent change is quantity demanded and percent change in price. Now calculate the price elasticity of demand PED): % change in quantity demanded/% change in price. If the PED is greater than 1, then demand is sensitive to price changes. If the PED is less than 1, then demand is inelastic (not sensitive to price increases). How would you use PED to test a proposed price change strategy in a deflationary environment, in the same and other industries, in Ina or any firm using its historical data.

Please explain this step by step. Thank you in advance.