The owner of Grand Central Bookstore is looking into the sales of its Health & Fitness magazine section. She finds that her equilibrium is at 800 magazines per month sold at an average price of $4.75 per magazine. When the price of these Health & Fitness magazines rose to $5.00 each, the quantity sold fell to 725 magazines per month, while the quantity supplied to her increased to 900 a month.From the scenario described, answer the questions below. (40 points)

1. Draw an appropriate graph for Grand Central's Bookstore's to illustrate this change in the Health & Fitness magazines market position when the price rises to $5.00. (10pts)
2. Using the midpoint method, calculate the price elasticity of demand for the Health & Fitness magazines between prices $4.75 and $5.00. Is it elastic or inelastic? How do you know? (10pts