Problem 1: Write a short essay identifying and describing two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand.
Problem 2: Indicate why your choices have the relative elasticities they do.
Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?
Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?