Q 0 1 2 3 4 5 6 7 Name: 1. Heavenly Donuts increases the price of its regular coffee from $2.00 to $2.35 per cup. As a result, Heavenly Donuts now sells 350 cups per day instead of 400 cups per day. Calculate the Price Elasticity of Demand. Show all of your work. Explain your answer. Prove your answer with the Total Revenue test and show all of your work. 2. If AMC Theaters increases the price of a large bucket of popcorn by 20% and the quantity demanded for popcorn does not change, we can determine the price elasticity of demand for popcorn is Explain your answer showing the formula and how you arrived at that answer. Draw the graph for what the demand curve would look like and label everything. What type of demand curve have you drawn? 3. In the following chart, complete the missing information. TFC $100 TVC $0 $49 $84 $108 $126 $146 $196 $275 TC MC P $50 $50 $50 $50 $50 $50 $50 $50 TR 4. What is the Profit or Loss at 4 units of output? Show your calculation. MR