Assignment:
1. Please identify the following products/services whether its demand is elastic or inelastic and give a brief explanation for each demand. The lecture on factors that determine the price elasticity of demand could be helpful.
2. If you are selling/providing each of these products/services, would you raise its price up or lower the price down to increase the total revenue for each product/service? Please also briefly explain.
3. The demands for these products have different income elasticity as well. Please categorize them with regard to income elasticity whether it is an inferior or normal (necessity or luxury) good. Please provide a brief explanation.
Products:
1. Legal service
2. Fast food
3. New vehicles
4. Used vehicles
5. Lawn-care service
6. Milk (not about the brands)
7. Gasoline
8. Cigarettes
9. Lottery tickets