Elasticity of Demand Airline travel for pleasure 1 5 Rice in US 0 55 Cannabis in US O
Elasticity of Demand Airline travel for pleasure Rice in US Cannabis in
Elasticity of Demand Airline travel for pleasure Rice in
Airline travel for pleasure Rice in US Cannabis in US O
Elasticity of Demand Airline travel for pleasure Rice
in US Cannabis in US O
Elasticity of Demand Airline travel for
Elasticity of Demand
Elasticity of Demand Airline travel (for pleasure) -1.5 Rice (in US) -0.55 Cannabis (in US) -O.

 Category: Words: Amount: \$25 Writer: 0

Paper instructions

Part 1: Elasticity of Demand Consider the following goods with the following elasticities of demand (source: Wikipedia https://en.wikipedia.org/wiki/Price_elasticity_of_demand): 1. Which of the goods above would you classify as necessity and which would you classify as a luxury given the elasticities of demand? Explain fully referencing the table above and discuss whether you are surprised by these elasticities. (3 points) 2. Suppose that the consumer price index reflected inflationary pressures in the economy with prices increasing by 2% for all goods. What would be the change in quantity demanded for each of the goods under this price increase? (3 points) 3. Find the price elasticity of demand for another good (you may use the same resource as I did if you like) and report about the good and why you think the price elasticity is accurate. (3 points) ATTACHMENT PREVIEW Download attachment Screen Shot 2017-10-27 at 2.34.29 AM.png Elasticity of Demand Airline travel (for pleasure) -1.5 Rice (in US) -0.55 Cannabis (in US) -O.655