1. In each of the following cases, indicate which good you think has a relatively more price elastic demand and identify the reason (more substitutes, bigger share of the budget, or more time to adjust)

a. Motorcycles or Harley Davidsons

b. Peanut butter or housing

c. Your electricity bill this month or over the entire year

2. If taxi fares rise, what will happen to the total revenue received by taxi operators assuming that the elasticity of demand for taxi fares is elastic? Explain