Use the following hypothetical demand schedule formovies to do exercises 1–4. Quantity Demanded Price Elasticity100 $580 $1060 $1540 $2020 $2510 $301. a. Determine the price elasticity of demand at eachquantity demanded using the arc or midpoint formula:Percentage change in quantity demanded _(Q2 _ Q1)/Q1 divided by percentage change inprice _ (P2 _ P1)/P1.b. Redo exercise 1a using price changes of $10 ratherthan $5.What would a 10 percent increase in the price ofmovie tickets mean for the quantity demanded of amovie theater if the price elasticity of demand was0.1, 0.5, 1.0, and 5.0?
