1. What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for Newspapers is estimated to be 3. What does this mean in term of responsiveness of demand? Discuss

2. You are on the manager of Bronx Zoo with the responsibility to decrease annual admission fares. You would recommend a decrease in the monthly fares only if you thought the demand curve for the Bronx Zoo visits was:

a. Inelastic

b. Elastic

c. Unitary elastic

d. Perfectly elastic

Discuss. Don't simply give your answer.

Use grading rubrics:

a. Define the term

b. Offer an example

c. Next, explain. Have you answered the questions

d. Try to relate the concept to previous work/assignment(s)