1) Is the demand for business tourism elastic or inelastic? Justify your answer with a suitable diagram

2) Define income elasticity of demand.Explain the relationship between coefficients of income elasticity of demand and the type of good in the economy.

3)The owner of a restaurant is considering lowering his menu prices to draw in more customers.Assuming you are the adviser, how would the knowledge on price elasticity of demand assist you in the decision making? Explain your reasons using appropriate diagrams.