Question: Please answer this question thank you Chapter 7 Questions You do not need to include this in the assignment. but please review the following terms:

Please answer this question thank you

Please answer this question thank you Chapter 7 Questions You do not

Chapter 7 Questions You do not need to include this in the assignment. but please review the following terms: Elasticity of demand. Inelastic demand. Elastic demand. Unitary elasticity. Perfectly inelastic supply. Income elasticity. Normal good. Inferior good. Please answer the following questions: 1 - Assume that demand for cigarettes is quite inelastic. What does this mean in terms of the demand for cigarettes? if a tax is added to cigarettes how will the quantity demanded change? If a tax is added to cigarettes. who will bear most of the burden? Meaning will the extra cost be passed on to the consumer? 2 - The book states that over time the elasticity of demand for a good is more elastic. What does this mean? In your own life when the price of gasoline was over $4.00 per gallon, how did the amount of your diving change? Over time did you even drive less? Would you say that over time your demand elasticity for gasoline was more elastic? 3 - From the following data about the demand for sets of dishware, calculate the elasticity of demand from point A to B, from point C to D and from point E to point P. Classify the elasticity as elastic. inelastic or unitary elastic. Also calculate the total revenue of each point. What happens to total revenue as you approach unitary elasticity? If cost were not an issue, what price would you choose for your selling price

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