Use figure 3.4 to answer the following: if the cost of gasoline increased from $3.00 per gallon to $4.00 per gallon and the quantity demanded decreases from 12 gallons to 10 gallons, would the demand be elastic or inelastic?

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%