Assume that you are a painter, and the price of a gallon of paint rises from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the given:
1) find out the price elasticity of demand for paint and show your computations.
2) Decide whether the demand for paint is elastic, unitary elastic or inelastic.
3) Describe your reasoning and interpret your results.