1.Classify the relative Price Elasticity of Demand (E_p) (Elastic, Unitary or Inelastic) for each of the following products. Be sure to provide a complete and logical set of economic reasons that support the chosen classification of the price elasticity of demand.

a.A gallon of milk

b.A T-bone steak

c.Tobacco products

d.Kit-Kat candy bar

2.Using alternative values for the Income Elasticity of Demand (E_i) (Negative, Zero, Positive, or strongly Positive [E_i > 1.0]), classify the E_i for each of the following products as inferior, normal, luxury or neutral (sticky) goods. Be sure to provide a complete and logical set of economic reasons that supports the chosen classification of the income elasticity of demand.

a.A two-week vacation in the Tahiti

b.Electricity

c.Used cars

d.New clothes

3.Using the correct relative value of the Cross Price Elasticity of Demand (E_x) (+,, or 0) for each of the following products, please identify the expected economic relationship (complements, substitutes, or unrelated) between the following product pairs. Be sure to provide a complete and logical set of economic reasons that supports the chosen classification of the cross price elasticity of demand.

a.Amazon Kindles and Samsung Galaxy Tabs

b.iPhones and iPhone cases

c.Taxi Service and Uber Service

d.New furniture and Pasta