Your friend, the manager of the Jewel on Dempster in Evanston, has a problem. She has too much cereal in the stockroom and needs to clear some space to make room for other merchandise. Over an adult beverage, she tells you that from experience she knows that in a typical week she sells 400 boxes of Fruit Loops at a price of $4 each, and 500 boxes of Quaker Oats at a price of $3.50 each. What's more, she estimates that the elasticity of demand for Fruit Loops at the Evanston Jewel is -4, while the elasticity of demand for Quaker Oats at her store is -2.5. a. Which cereal should she put on sale if she wants to clear out her inventory with the smallest possible drop in price? b. If she wants to sell a total of 1000 boxes of the two cereals this week, by how much should she discount the cereal you recommended in part a above