If the price of gasoline doubled, how would consumption of (a) cars, (b) public transportation, and (c) in-theatre movies be affected? How quickly would these adjustments be made?
Is the demand for iPhones price inelastic or elastic? Why? Is income elasticity high or low?
If the elasticity of demand for coffee is so low (Table 20.1), why doesn’t Starbucks raise the price of coffee to $10 a cup?