Dee Mak, owned by Jack, is a new hawker stall selling jackfruit sticky rice that is located in a prime piece of land in Clementi. Refer to Dee Mak's production and cost figures in Table 1 to answer the following questions.

Table 1: Weekly cost and production data

Price ($)	Quantity demanded (jackfruit sticky rice)	Marginal Revenue ($)	Total Variable Cost ($)	Total Cost ($)
7.80	108	5.50	39.80	70.80
7.70	112	5.00	56.60	87.60
7.60	116	4.80	75.50	106.50
7.50	120	4.60	107.00	138.00

1. Identify the quantity of jackfruit sticky rice that Jack should be producing and justify why this is the best economic choice. Assume that it cost Dee Mak $3 to produce the 108^th jackfruit sticky rice. (7 marks)

[Note: Be sure to include relevant formula and workings]

1. Calculate the price elasticity of demand using the Mid-Point formula when the price of jackfruit sticky rice decreased from $7.60 to $7.50. Explain how offering a price discount would impact Dee Mak's sales revenue. (5 marks)

Price elasticity of demand=