Suppose that the adoption fee at the animal shelter is initially $15.00 and the average number of animals adopted per week at that price is 100. In the face of rising costs, there is an increase in the pet adoption fees at the animal shelter from $15.00 to $22.50 (a 50 percent price increase). Proponents of the increase argue that it is necessary to raise revenues for the shelter. Critics of the plan worry that the fee increase might decrease adoptions enough to actually lower shelter revenues. 

a. What is the revenue earned by the shelter for animal adoptions before the fee increase?

b. Suppose animal adoptions fall by 10 percent in response to the 50 percent fee increase (to 90 animals per week). What is the new level of total revenue earned from adoptions? What is the value of the elasticity coefficient for this price and quantity change? Is demand elastic or inelastic?

c. Now suppose animal adoptions fall by 60 percent in response to the 50 percent fee increase (to 40 animals per week). What is the new level of total revenue earned from adoptions? What is the value of the elasticity coefficient for this price and quantity change? Is demand elastic or inelastic?

d. Besides price, describe a factor that could influence the elasticity of demand for animals from the animal shelter.