The questions are based on the following diagram: Percentage changes 35 30 25 20 15 10 5 0 0 1 2 3 4 5 6 Year --Variable 1 -Variable 2 --Variable 3 a. A decrease in variable 3 will cause a decrease in variable 2. b. An increase in variable 1 will cause a decrease in variable 2. c. An increase in variable 2 will cause an increase in variable 1. d. A decrease in variable 1 will cause an increase in variables 2 and 3. e. None of the above statements are correct.

I cant seem to remeber the formula to use to fill out S2 and D2

no handwritten notes

4). APPLEWATCH (this concentrates on the mathematical part of the readings) (19 Points) a) This question is based on the impact of Lowering the Price of the Apple watch to $312 (note the original price of $349) a. Calculate the Point Price Elasticity of Demand for the Apple Watch (this requires you to show your work, calculate the number and explain the results of the Price Elasticity of Demand—in effect, is it elastic or inelastic and why-you should use the original price and the new price of $312)? (6 Points) b. Calculate new Total Revenue given this price reduction (begin by calculating what was initial total revenue when the price was $349). Note—use the demand function to calculate quantity demanded. (4 Points) c. Given a Variable Cost that is provided on Page 5 of the lecture Powerpoint (and not including the sunk/fixed costs) what is the profit maximizing output given a price of $349? (3 points) b) If Apple kept their price at $349 and Samsun reduced the price of their GearS to…