est tra eli WI tra w nat explains this relationship! 4. The Ice Cream Parlor is the only ice cream parlor in Smithtown. Michael, the son of the owner, has just come back from college, where he majors in business administration. In his course in managerial economics, Michael has just studied demand analysis, and he decides to apply what he has learned to estimate the demand for ice cream in his father's parlor during his summer vacation. Using regression analysis, Michael estimates the following demand function: dei *8. Th qus inc the cor 80, ela 80, $10 con 9. Ar of c is is 3 inci Q,= 120 - 20P, where the subscript / refers to ice cream portions served per day in his father's parlor, and P, is the dollar price. Michael then sets out to (a) derive the demand schedule for ice cream and plot it, (b) find the point price elasticity of demand at each dollar price, from P = $6 to P = $0, and (c) find the arc price elasticity of demand between consecutive dollar prices (i.e., between P= $6 and P = $5, P = $5 and P= $4, and so on). Show how Michael would get his results. *5. Show how Michael could have found the price elasticity of demand (E) for ice cream graphically at, say, P, = $4 for the demand function given in Problem 4. Also show graphically that at P, = $4, E, would be the same if the demand curve for ice cream were curvilinear but tangent to the linear demand curve at P,= $4. 6. For the demand funatiom 5 p disp sale 8 m you (b) incr to ir 10. The regn