1. The arc price elasticity for beds is:
"Ed = \\frac{300 - 200} {750 - 1,000} \u00d7 \\frac{750 + 1,000} {300 + 200} = - 1,750\/1,250 = -1.4."
2. The arc income elasticity for beds is:
"Ed = \\frac{60,000 - 50,000} {750 - 1,000} \u00d7 \\frac{750 + 1,000} {60,000 + 50,000} = -7\/11 = -0.64."
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