The Utopia Corporation manufactures a line of microwave ovens costing $600 dollars each. Its sales have averaged about 4,000 units per month during the past year. In August, Utopias Corporation CEO Dr. Sheila was forced to cutovens price from $600 to $425 dollars because of the fierce industry competition in order to secure the companys survival. Hence, Utopias sales volume increased to 5,900 units permonth after the announcement of its price cut.

Given Table 1 below estimate the following relationships carefully:

Table 1

Price [P]	Quantity [Q]	Elasticity [ED]	Total Revenue
($/Unit)	(Units)		TR=P x Q
600	4000
425	5900

a.Calculate its own-price Elasticity of the Demand.

b.Calculate the Total Revenue for the firm.

c.Carefully explain the concept of Elasticity.

d.Carefully explain the concept of Income Elasticity.