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Exercise 3: (2.0 marks) 1. M. is researching consumer reactions. She has determined that when the price of hand lotion increases 1%, the quantity demanded of tissues increases 10%. What kind of elasticity is being measured, and what can M. determine based on this information? 2. When P.'s income increased by 10%, her quantity demanded of hotel rooms increased by 5%. What kind of good does P. consider hotel rooms? Explain your idea? 3. A research company has determined several goods have income elasticities as indicated in the table below: Good Income Elasticity of Demand Cereal 0.30 Glasses -1.5 Office chairs 0 Theater tickets 4 During a recession (when income decreases), what happens with the quantity demanded of each type of the above goods