Your answer(s) should be in paragraph form. with complete sentences. Grammar is important !One or two paragraphs should be sufficient to answer each question.Support your answer with economic reasoning and facts.

6-1 Elasticity of T-Shirt Sales

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?

6-2 Increasing Movie Ticket Prices

To conduct an experiment, AMC increased movie ticket prices from $9.00 to $10.00 and measured the change in ticket sales. Using the data over the following month, they concluded that the increase was profitable. However, over the subsequent months, they changed their minds and discontinued the experiment. How did the timing affect their conclusion about the profitability of increasing prices?