1 With the help of a diagram and schedule, show all the degrees of Elasticity of demand. 2. Suppose the price elasticity of demand for a good is -0.2. Ifthere is a 5% increase in the price of the good, by what percentage will the demand for the good go down? 3- Which of the following goods are likely to have elastic demand, and which are likely to have inelastic demand? Home heating oil Pepsi Chocolate Water Heart medication Oriental rugs 4. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction? 5. Henry Ford famously mass-produced cars at the beginning of the twentieth century, starting Ford Mtor Company. He made millions because mass production made cars cheap to make, and he passed some of the savings to the consumer in the form of a low price. Cars became a common sight in the United States thereafter.Keeping total revenue and its relationship with price in mind, do you expect the demand for cars to be elastic or inelastic given the story of Henry Ford