Problem
1. We learned that economists have special terms for elasticities of particular magnitudes. Name the magnitudes for the following: inelastic, elastic, unit elastic, perfectly elastic, and perfectly inelastic.
2. What is total expenditure? Total revenue?
3. Why must you know the price elasticity of demand to be able to predict the effect of a change in price on total expenditure?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.