Once again, refer to Table 2 in this chapter and
answer the following questions:
a. Is the demand for recreation more or less elastic
than the demand for clothing?
b. If 10,000 two-liter bottles of Pepsi are currently
being demanded in your community each month,
and the price increases from $1.90 to $2.10 per
bottle, what will happen to quantity demanded?
Be specific.
c. By how much would the price of ground beef have
to increase (in percentage terms) in order to reduce
quantity demanded by 5 percent?