1) What are the three cases for the price elasticity of demand? Briefly define each.

2) What does a horizontal demand curve indicate about the price elasticity of demand?

3) If the owner of a local movie theater wanted to increase the theater's total revenue

from movie admissions, what should the owner do with ticket prices?

4) "The fewer the number of substitutes for a good, the more elastic the demand for that

good." Is the previous statement true or false?