1. **State the problem:** Calculate the Price Elasticity of Demand (PED) as the price of T-Shirts increases from $8 to $14 when income is $15M. 2. **Recall the formula for PED:** $$\text{PED} = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}} = \frac{\frac{Q_2 - Q_1}{Q_1}}{\frac{P_2 - P_1}{P_1}}$$ 3. **Identify values from the table for income = $15M:** - Initial price $P_1 = 8$ - Final price $P_2 = 14$ - Initial quantity demanded $Q_1 = 22$ - Final quantity demanded $Q_2 = 16$ 4. **Calculate percentage changes:** - Percentage change in quantity demanded: $$\frac{16 - 22}{22} = \frac{-6}{22} = -0.2727$$ - Percentage change in price: $$\frac{14 - 8}{8} = \frac{6}{8} = 0.75$$ 5. **Calculate PED:** $$\text{PED} = \frac{-0.2727}{0.75} = -0.3636$$ 6. **Interpretation:** The PED is approximately $-0.36$, which means demand is inelastic in this price range for income $15M$. A 1% increase in price leads to about a 0.36% decrease in quantity demanded, indicating consumers are relatively unresponsive to price changes here.