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1. Tesla is thinking of changing the price of their new trucks from $80,000 to $70,000. This decrease in price is expected to increase the number of trucks sold from 6,000 to 7,000. a. What is the price elasticity of demand (please show all of your calculations)? (5 pts) b. Are consumers sensitive or insensitive to the change in price? How do you know? (3 pts) c. How will the total revenue generated from Tesla truck sales change (or not) due to the decrease in price? How do you know (relate to your price elasticity of demand)? (3 pts) d. Should Tesla change the price of their trucks? Justify your answer! (3 pts) e. Explain how the price elasticity of demand will change along the demand curve for Tesla's trucks (make sure to justify with a graph) (3 pts)

Fig: 1