For each of the following events, state the relevant elasticity concept. Then compute the measure of elasticity, using average prices and quantities in your calculations. In all cases, assume that these are ceteris paribus changes.
a. When the price of movie tickets is reduced from $14.00 to $11.00, ticket sales increase from 1200 to 1350.
b. As average household income in Canada increases by 10 percent, annual sales of BMWs increase from 56 000 to 67 000.
c. After a major failure of Brazil's coffee crop sent coffee prices up from S3.00 per kilogram to S4.80 per kilogram, sales of tea in Canada increased from 7500 kg per month to 8000 kg per month,
d. An increase in the world demand for pulp (used in producing newsprint) increases the price by 14 percent. Annual Canadian production increases from 8 million tonnes to 11 million tonnes.