Address the following: Price elasticity of demand refers to the percentage change in demand resulting from a percentage change in price. Please review the definition of relative inelasticity and relative elasticity. These terms refer to how much demand changes based on a change in price.
1) Choose any three products and classify and describe their price elasticity of demand; (relatively inelastic, relatively elastic, perfectly elastic, perfectly inelastic, or unitary elastic;
2) The three products should illustrate different elasticities; ie: do not choose two relatively inelastic products.
3) Discuss what happens to the demand when the price changes, for each of your items, specifically how much does demand change when the price changes?
4) Explain why demand changes the way it does for each of your three products