Use the midpoint formula to calculate the elasticity of demand for legal services using the following data: When the price of legal services was $100 per hour, the amount of hours used by consumers was 10,000 hours. When the price increased to $150, the amount of hours decreased to 8,000.

a.Calculate the value of the elasticity (use midpoint formula and show your work)

b.Given the value in your answer in (a), is demand elastic or inelastic?

c.What happened to total revenue when the price increases?

d.Given the value in your answer in (a), by how much and in what direction does quantity change if price rises 10 percent? (