Variable Gallons sold per Price Cost cost Revenue (pricex gallons) Cost per Gallon Fixed cost per day Total Cost Fixed + Variable) per unit x volume] Daily Prot trevenue costs) day 360) 4400 3. After seeing the result (from question 2), Cal decided to lower his price once again to $2.729 per gallion. Once again, volume sold increases and settles at 4,800 gallons per day. He is worried that any further price cut will cause the discount station across the street to also lower its price. Answer question 3 below. Quantity Price Average Average What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? (Profits are revenue minus all costs.) % change % chanje Elasticity of Demand Elasticity: Select One By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? Gallons sold per Fixed cost per Price Revenue (pricex Ballons) Cost per Gallon Variable Cost (cost per unit vokime) Total Cost (Fixed Variable) Daily Pror frevenue costs) day day 4400 Supply and Demand Graph Profit Maximization 98% 10:42 AM 107/2019 Variable Gallons sold per Price Cost cost Revenue (pricex gallons) Cost per Gallon Fixed cost per day Total Cost Fixed + Variable) per unit x volume] Daily Prot trevenue costs) day 360) 4400 3. After seeing the result (from question 2), Cal decided to lower his price once again to $2.729 per gallion. Once again, volume sold increases and settles at 4,800 gallons per day. He is worried that any further price cut will cause the discount station across the street to also lower its price. Answer question 3 below. Quantity Price Average Average What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? (Profits are revenue minus all costs.) % change % chanje Elasticity of Demand Elasticity: Select One By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? Gallons sold per Fixed cost per Price Revenue (pricex Ballons) Cost per Gallon Variable Cost (cost per unit vokime) Total Cost (Fixed Variable) Daily Pror frevenue costs) day day 4400 Supply and Demand Graph Profit Maximization 98% 10:42 AM 107/2019