100 POINTS MICROECONOMICS A local drinking establishment recently raised its price of a draft beer from $4 to $5. As it did, the number of beers it sold decreased from 5,000 to 4,000 per month of this particular brew.

Over this price range, what was the elasticity of demand for this beer?

What was the degree of elasticity for this beer?

A 1% change in the price of this beer led to a change in quantity demanded of ___%?

What happened the bar’s total revenue as it raised its price?

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.