Computing and Interpreting the Price Elasticity of Demand and Total Revenue Jse the mid-point method to calculate the price elasticity of demand. Step by step show your nathematical work and explain your answer. 1. (3 points) Suppose an office supply store increased its price of file folders from $.79 per box to $.99 per box and the quantity demanded decreased from 85 boxes per month to 83 boxes per month. a. What is the price elasticity of demand for file folders? b. Tell whether the demand is elastic, unit elastic or inelastic. c. What happens to the total revenue generated for the office supply store as a result of the price increase, and how does it show the relationship between elasticity and total revenue? 2. (3 points) If the price of a product were increased from $25 to $26, the quantity demanded fell from 10 units to 9 units. a. Calculate the price elasticity of demand. b. Tell whether the demand is elastic, unit elastic or inelastic. c. Calculate the change in total revenue as a result of the price increase, and how does it show the relationship between elasticity and total revenue?