1.       Suppose the price of gasoline in July 2018 averaged $1.35 a gallon and 15 million gallons a day were sold. In October 2018, the price averaged $2.15 a gallon and 14 million gallons were sold. If the demand for gasoline did not shift between these two months, use the midpoint formula to calculate the price elasticity of demand. Indicate whether the demand was elastic or inelastic.

1. If a 7 percent rise in the price of Pepsi increases the quantity of Coca Cola demanded by 4 percent and decreases the quantity of Pepsi demanded by 3 percent, calculate the cross price elasticity of demand for Coca Cola with respect to the price of Pepsi.

Border Crossings from the USA into British Columbia , Canada Up 15 Percent Cheap gasoline brought 964,000 American visitors through border crossings in B.C. during the first four months of 2016, a 15 percent increase from the previous year. (Source: Vancouver Sun, July 9, 2016) The U.S. energy Information Administration reports the average price of gasoline was $2.83 a gallon in July 2015 and $2.22 a gallon in July 2016.   Calculate the price elasticity of demand for British Columbia border crossings and interpret your results in non-economic terms  With COVID-19 and the temporary closure of the Canada-US border to non-essential travel, is the concept of price elasticity of demand still relevant to doing business in Canada, especially in the travel and tourism sector? Explain briefly.

Give typing answer with explanation and conclusion “This week, my place of employment, Super-Save Supermarket, lowered the price of apples from $1 to 80 cents per pound. The quantity of apples we sold last week was 200 pounds. And this week, the quantity sold was 250 pounds. I’m interested in knowing about the price elasticity of demand. In this case, can it be described as elastic, inelastic, or unitary elastic? What do you predict will happen to total revenue?”