4. The elasticity of demand in the local hardware industry is-1.5, while in the video market it is -4. Which industry has a higher markup over marginal cost (as a percentage of price)? In answering, calculate the markup for each. 5. The local botled water supplier sells water for S0.50 per gallon, while marginal cost is S0.20 per gallon. What is this firm’s degree of monopoly power, as measured by the Lerner index?