QUESTIONS:
Discuss the "Proportion of Income Devoted to a Good" concept by contrasting two products typically purchased each month.
1. Address, in your discussion, specific examples of how the same percentage change in the price of both goods affects the percentage change in the quantity demanded for each of the two goods.
2. Identify by price range the areas on the demand curve where demand is elastic, inelastic, and unit elastic using the attached "Graphs for Elasticity of Demand, Total Revenue."
3. Explain the corresponding impact on total revenue for each of the three price ranges indentified in part G.