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Suppose we have the following price and quantity data for movie theater popcorn: A B Price...

Suppose we have the following price and quantity data for movie theater popcorn:

A B

Price    $5.00 $7.00

Quantity Demanded    5,000 bags of popcorn 2,500 bags of popcorn

a. Please plot points A and B. Then draw a simple demand curve for bags of popcorn.

b. When price rises from $5 to $7, what is the price elasticity of demand for popcorn?

c. Would you classify this good as relatively elastic or relatively inelastic

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