Surname 6 Name Instructor Course Date Elasticity and Inelasticity Question 1 Initial price of business loans (P1) =3% New price of business loans (P2) =5% Initial demand for loans (Q1) =1000 applicants New demand for loans (Q2) =500 applicants Calculating business loans price elasticity of demand (P.ED). in general, ===-0.6667 ===0.5 Therefore, ==-1.3333 Question 2 Initial iPhone 6 price (P1)=$899.99 New iPhone 6 price (P2)= $649.99 Initial quantity demanded (Q1)= 2000000 New quantity demanded (Q2)= 3000000 To calculate iPhone 6?s price of elasticity of demand (P.E.D), the fomula applied in question 1 is used. Therefore, ===0.4 Similarly, ===--0.3226 Therefore, ==-1.2394 Question 3 Initial quantity (Q1)=6 New quantity (Q2)=7 Initial price of gas (P1)= $4.15