Activity ii 4: problem solving 1. Last Friday, the price of pizza was Ph 100 a box, and Michael was willing to buy 10 boxes. Today, the price has gone up to Php 150 a box, and Michael is now willing to buy 8 boxes. ls Michaels demand for pizza elastic or inelastic? What is Michael's elasticity of demand? 2. The following is he demand schedule for waffles. Quantity demanded a. calculate the arc elasticity coefficient as price decreases from 120 to 100, 80 to 60, and 60 to 40.5 b. what happens to the coefficient of elasticity as P decreases along the demand curve? c. What happens to TR as P decreases? 3. A study conducted by the Australian Medical Association suggests that every 10 per cent increase in the price of cigarettes is associated with a 5 per cent decrease in the quantity of cigarettes demanded. 3) Use the gures from this study to calculate the price elasticity of demand for cigarettes. b) On the basis of your findings, does this suggest that increasing the price of cigarettes will substantially decrease smoking