1) When does a decrease in supply raise the price more: When demand is elastic or when demand is inelastic? When OPEC decreases the supply of oil, the price of gasoline skyrockets. Hence is the demand for gasoline elastic or inelastic?

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

3) If the percentage change in quantity demanded is greater than the percentage change in price, can you determine if the demand is elastic, unit elastic, or inelastic? Explain your answer.

4) "The fewer the number of substitutes for a product, the more elastic the demand for that product." Is the previous statement true or false?