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1. What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for TV is estimated to be 4. What does this mean in term of responsiveness of demand? Discuss
2. You are on the manager of NYC Transit Authority with the responsibility to decrease annual Bus and Subway fares. You would recommend a decrease in the annual fares only if you thought the demand curve for the City Bus and Subway system was:
c. Unitary elastic
d. Perfectly elastic
Jack has noticed that as they walk up the hill, the air seems to be getting thinner. He collects air samples and measures these, he believes he will find a correlation between
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