For each of the following situations, state whether total revenue received by the seller increases, decreases, or does not change. Type your answer in the blank space provided. Your answers should be increases, decreases, or does not change. a) If price elasticity of demand is -0.75 and price decreases, total revenue b) If price elasticity of demand is -1.5 and price decreases, total revenue c) If price elasticity of demand is -0.25 and price increases, total revenue d) If price elasticity of demand is -3.25 and price increases, total revenue e) If price elasticity of demand is -1.00 and price decreases, total revenue

QUESTION TWo. Suppose the Daily Graphic Newspaper estimates that if it raises the price of its newspaper from Ghc1.00 to Ghc1.50 then the number of subscribers will fall from 50,000 to 40,000. a. What is the price elasticity of demand for the Daily Newspaper when elasticity is calculated using the midpoint method? b. What is the advantage of using the midpoint method? c. If the Daily Newspaper's only concern is to maximize total revenue, should it raise the price of a newspaper from Ghc1.00 to Ghc1.50? Why or why not? d. Suppose there is an increase in consumers' incomes. In the market for automobiles (a normal good), does this event cause an increase in demand or an increase in quantity demanded? Does this cause an increase in supply or an increase in quantity supplied? (Explain. NB: Explanation must not be more than half a page.) e. Suppose there is an advance in the technology employed to produce automobiles. In the market for automobiles, does this event cause an increase in supply…

Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is____ if your income is $20,000 and___ if your income is $24,000. If the price of a pizza is $12, your income elasticity of demand is_____ as your income increases from $20,000 to $24,000. However, if the price of a pizza is $16, your income elasticity is______ .

Jose owns a donut business in Los Angeles, and he wants to increase his total revenue. He knows that, when donuts are $1, he sells 200 an hour, and when he lowers the price to $0.75, he sells 280 an hour. A) Using the midpoint method, compute the price elasticity of demand for Jose’s donuts. Please show the formula used for understanding.  B) Based on (A) is demand for Jose’s donuts elastic or inelastic? How do you know? Explain  C) Should he raise or lower the price to generate more revenue.