There are two parts.
Part 1
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.
500 words minimum; this does not include title information, references, or an abstract) Please include your references.
Choose any three products and classify and describe their price elasticity of demand
(relatively inelastic, relatively elastic, perfectly elastic, perfectly inelastic, or unitary elastic; your three products should illustrate different elasticities; ie: do not choose two relatively inelastic products)
Explain why demand changes the way it does for each of your three products
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?
Part 2
Define and explain each of the terms and provide an example of each using a minimum of 50 words
Description of term (in your own words)
Integration of example (50 words minimum for each term)
1) Unitary Price Elasticity
2) Perfect Price Inelasticity
3) Cross Elasticity of Demand
4) Income Elasticity
Word count minimums do NOT include rewriting the questions or your references or title information!