Need answer for # 2 A & B and also # 3 A, B, C, D, &E

2. The train management ofce reported that metro train ridership declined after a fare increase: "There were nearly four million fewer riders in last month, after the price of each ride increased by 3.5 pesos to 15 pesos in the previous month, a 4.3 percent decline.\" a. b. Use these data to compute for the price elasticity of demand for metro train rides. [5 points) Interpret the result - is it price elastic or price inelastic. Why? (5 points) 3. The market for donuts has the followin- demand and su u ply schedules: m \" a. b. 2: 30 53 36 39 Graph the demand and supply curve. Make sure each curve and the axes are labeled accordingly. (15 points] Identify the equilibrium price and equilibrium quantity for this market using the graph in (3). Write your answer here. (5 points) If the price in this market were above the equilibrium price, what will the market experience? illustrate by identifying a price higher than the equilibrium price and explain. [10 points). If the price in this market were below the equilibrium price, what will the market experience? Illustrate by identifying a price lower than the equilibrium price and explain. [10 points). The health department publishes a study that indicates donuts to be a major contributor to obesity, what will happen to the graph? Use a new graph separate from (a) and illustrate the impact on the market for donuts. Explain. (10 points)