1. Define the price elasticity of demand and the income elasticity of demand.

2. List and explain the four determinants of the price elasticity of demand.

3. If the elasticity is greater than 1, is demand elastic or inelastic? If the elasticity equals zero, is demand perfectly elastic or perfectly inelastic?

4. On a supply-and-demand diagram, show equilibrium price, equilibrium quantity, and the total revenue received by producers.