Please assist in understanding elasticity in application to real life situations, instead of just theoretical.
Problem 1) If own price elasticity for demand is -0.25, what percentage would you change the price of a good to change consumption of this good by 10%? Would this change in price be an increase or decrease? Is this demand elastic, inelastic or unit elastic and why? Would the company who produces the good total revenue increase or decrease and why?
Problem 2) Which of these would have more elastic demand and why?
a) A good in an intensely competitive market vs. the only firm in the market
b) Gasoline when your tank is empty vs. gas when your tank is full
c) Salt vs. rent
d) Bottled spring water vs. water from the faucet.