1. Price Elasticity A. Using the total Revenue test described beginning on page 123, determine whether the following goods are elastic, inelastic or unit elastic: 1. Price rises from 5 to 6 and quantity falls from 15 to 10. 2. Price falls from 10 to 9 and quantity rises from 100 to 110. 3. Price falls from 3 to 2 and quantity rises from 200 to 300. 4. Price rises from 3.75 to 4 and quantity falls from 340 to 300. B. Using the mid-point formula found on page 116, determine whether the following goods are elastic, inelastic or unit elastic: Price Quantity Demanded 12 50 10 70 8 80 95 6 1. price goes from 12 to 10 2. price goes from 10 to 8 3. price goes from 8 to 6 4. Why is it important for a producer of a product to know the price elasticity of demand?