Question 6 The table below provides the demand schedule for motel rooms at Small Town Motel. Use the information provided to complete the table. Answer the following questions based on your responses in the table. Use the midpoint method to calculate the percentage changes used to generate the elasticities. Price Quantity Total % Change in % Change in Elasticity (E Demanded Revenue Price Quantity 20 24 40 20 60 16 80 12 100 8 120 a. Over what range of prices is the demand for motel rooms elastic? To maximise total revenue, should Small Town Motel raise or lower the price within this range? b. Over what range of prices is the demand for motel rooms inelastic? To maximise total revenue, should Small Town Motel raise or lower the price within this range? c. Over what range of prices is the demand for motel rooms unit elastic? To maximise total revenue, should Small Town Motel raise or lower the price within this range? Question 7 The demand schedule from Question 6 above is reproduced below along with another demand schedule when consumer incomes have risen to $60,000 from $50,000. Use this information to answer the following questions. Use the midpoint method to calculate the percentage changes used to generate the income elasticities. Price Quantity Quantity (E) Demanded Demanded Income = E50,000 Income = E60,000 20 24 34 40 20 30 60 16 26 80 12 22 100 8 18 120 14 a. What is the income elasticity of demand when motel rooms rent for E40? b. What is the income elasticity of demand when motel rooms rent for E100