• If the price of gasoline doubled, how would consumption of (a) cars, (b) public transportation, and (c) in-theater movies be affected? How quickly would these adjustments be made? (25%)
• Identify two goods each whose demand exhibits (a) high income elasticity, (b) low income elasticity, (c) high price elasticity, and (d) low price elasticity. What accounts for the differences in elasticity? (25%)
• If you owned a movie theater, would you want the demand for movies to be elastic or inelastic? (25%)
• How has the Internet affected the price elasticity of demand for air travel? (25%)

Answer rating: 100% (QA)

1 Ca Consumption of cars would fall because cars are a complementary good used with gasoline ... View the full answer