please help with question 1

please help with question 2

thanks

A B C D E F G H I 23 24 1. Last week, Cal sold an average of 4,000 gallons per day at an average price of $2.749 per gallon. This 25 week, he raised the average price by 1 cent to $2.759 per gallon, and both revenues and profits dropped. 26 His station is now selling an average of 3,600 gallons per day. Fixed costs of operating the gas station are 27 $250 per day. 28 What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? 32 By how much did profits increase or decline? (Profits are revenue minus all costs.) 29 30 31 Elas By! By! So 2 L M 23 Answer question 1 below. 24 Quantity Price 25 4000 2.749 26 3600 2.759 27 Average Average 3800 2.754 29 % change % change Elasticity of Demand 30 -10.000% 0.360% 27.490 32 Elasticity: Price Elastic 33 By how much did revenues increase or decrease as a result of the change in price $ 34 By how much did profits increase or decline? ecline? $ $ 4.00 1,063.60 35 Price Gallons sold per day 4000 3600 Variable Revenue (price x Cost (cost Cost per Gallon gallons) per unit x volume) 10,996.00 $ 2.381 $ 9,524.00 Total Cost Fixed cost per (Fixed + Variable) $ 250.00 $ 9,774.00 day Daily Profit (revenue - all costs) $ 1,222.00 $ $ 2.749 $ 2.759 40 Answer question 2 below. 41 Quantity Price 42 43 cuinn and Demand Granh Profit Maximization 39 40 41 2. After seeing your analysis, Cal decides to lower the price of gas to $2.739 per gallon. After this change, 42 the volume sold increased to 4,400 gallons per day. He asks you to measure his business gains or losses as 43 a result of this price change. Fixed costs are $250 per day. 44 45 What is the price elasticity of demand? 46 Can the demand be characterized as price elastic, price inelastic, or neither? 47 By how much did revenues increase or decrease as a result of the change in price? 48 By how much did profits increase or decline? (Profits are revenue minus all costs.) 49 50 51 52 40 Answer question 2 below. 41 Quantity Price Average Average 46 % change % change Elasticity of Demand 48 49 Elasticity: Select One 50 By how much did revenues increase or decrease as a result of the change in price? 51 By how much did profits increase or decline? 52 Variable Gallons Revenue (price x Cost (cost Fixed cost per sold per Price Cost per Gallon gallons) per unit x day day volume) 3600 4400 Total Cost (Fixed + Variable) Daily Profit (revenue - all costs) 55 56 57 Answer question 3 below. 58 Quantity Price 59 Supply and Demand Graph Profit Maximization