1. The midpoint method:a. Find the midpoint of 8 and 16.b. Show me the percent change using the midpoint method as a variable goes from 8 to 16.c. Show me the percent change using the midpoint method as a variable goes from 3 to 7.d. Find me the ratio (b)/(c). Could you call this an elasticity? Why or why not?2. There are three types of elasticity discussed in this class. What are they? Are there others?3. Below are a series ofrandom numberstaken from atmospheric noise, which is as random as itgets.(random.org, 2013)Type Y1 Y2 X1 X2Income 10 5 3 2Income 5 1 6 7Own-Price 10 3 1 5Own-Price 2 8 7 7Cross-Price 6 4 4 8Cross-Price 6 4 1 8Income 7 9 4 7Own-Price 7 10 8 5Calculate the elasticity of each of these, showing your work each time. Consider the variable Y tobe the numerator(goes on top) as it goes from Y1 to Y2, and the variable X to be the denominator(goeson bottom) as it goes from X1 to X2. Tellme which of the following would apply to the good: elastic,inelastic, complement, substitute, luxury, normal, or inferior. In each question, tell me what Y and X are,for example: ?X in this case is a price of a good, and Y is the price of a different good.?While the table was randomly generated, and I didn?t have to alter it at all, which questionsshould I look at before I send you the assignment? Remember, one type of elasticity requires somethingto be true about the direction and magnitude of the effect.4. As you advance into the PhD program in economics, you come acrossthe following phrase in apaper you are studying:?The elasticity, denoted here as ?ii, is 5.334, indicating that the good is highly inelastic.?What type of elasticity is it? And is that elasticity supposed to be positive or negative? Is thatpaper correct in its assertion or not?5. I am calculating the elasticity of crime. Say I find that one additional officer, a 1.3% increase inthe police force, lowers nonviolent crime in Milwaukee by 3.2%. What is the final value of theelasticity? Should I say that the relationship of crime to officers is elastic or inelastic? Defendyour choice.