Question 1: [25 marks] A car park operator increases the price of car parking from 4 per day to ES per day and finds that the usage of the car park reduces from 1,000 cars per day to 750 cars per day a) Calculate the arc price elasticity of demand for this price change and state whether it is elastic, inelastic or unit elastic (10 marks) The car park operator decides to hire a consultancy firm to determine the demand function for the car park. After a period of gathering data and subsequent analysis, the consultancy firm determines that the demand can be approximated by the following equation: P=8-0/250 Where is the price charged and Q is the number of cars in the car park b) Calculate the point price elasticity of demand if the car park charges 2 per day. (10 marks) c) Explain any difference in the price elasticities calculated in (a) and (b) (5 marks) (