Directions: You must show work. Partial or full credit will only be given if answers are supported by work. Also, if you have the correct answer but incorrect work to support the answer you will not receive full credit. 1. Given the demand equation x = f(p) = 900(50 - p), D: [0, 50] (10 pts) a. Find the elasticity of demand E(p) and simplify the answer b. What is the elasticity of demand when the price is $7.50? Is demand elastic or inelastic at this price? c. If the $7.50 price is increased by 20%, what is the approximate increase or decrease in demand? d. At a $30 price, E(p) = 1.5. If that price is cut by 10%, will the revenue increase or decrease? Explain