1. Define Elasticity of Demand.
2. How do you find it?
3. What does it mean for a good to be elastic?
4. What does it mean for a good to be inelastic?
5. What does it mean for a good to be unit-elastic?
6. List the 4 Determinants of Elasticity.
7. Which of the following goods is likely to
be Elastic (E) or Inelastic (I)?
a. 14 K gold necklace
b. bread (in general)
c. Coca-Cola
d. pencils (in general)
e. water
f. heart medicine
g. Hilfiger shirts
h. products at Harris Teeter
8. Why do businessmen need to understand Elasticity
of Demand?