When the price of a good increased by 10 percent, the quantity demanded of it decreased by 2 percent.

1. Is the demand for this good elastic, unit elastic, or inelastic?

2. Does this good have close substitutes or poor substitutes? Is this good more likely to be a necessity or a luxury and to be narrowly or broadly defined? Why?

3. Calculate the price elasticity of demand for this good; explain how the total revenue from the sale of the good has changed; and explain which of the following goods this good is most likely to be: orange juice, bread, toothpaste, theater tickets, clothing, blue jeans, or Super Bowl tickets.