Use the following information to answer questions 3 and 4:

Consider the following demand schedule for shoes.

Price Quantity Demanded

$5 385

$10 365

$15 345

$20 325

$25 305

$30 285

$35 265

$40 245

3. Suppose that the store increases the price of shoes from $25 to $30. Using the mid-point approach, calculate price elasticity of demanded.

4. Suppose that the store increases the price of shoes from $25 to $30. Based on this information, the demand curve would be classified as (select one):

a. inelastic

b. elastic

c. unit elastic