1.Go online and find one item you think is price elastic and one that you think is price inelastic

2.Do you feel the Government should regulate the market for either or both of these items?Explain answer.

3.Read the attached file and answer all the questions.

Watch the link below first! Nutella is a sweet breakfast spread that people often use on bread.

https://www.youtube.com/watch?v=UyjM62yLGFQ

4.Nutella 'riots' spread across French supermarkets-

A discount on Nutella has led to violent scenes in a chain of French supermarkets, as shoppers jostled to grab a bargain on the sweet spread.

Intermarch supermarkets offered a 70% discount on Nutella, bringing the price down from 4.50 (3.90) to 1.40.

But police were called when people began fighting and pushing one another.

"They are like animals. A woman had her hair pulled, an elderly lady took a box on her head, another had a bloody hand," one customer told French media.

A member of staff at one Intermarch shop in central France told the regional newspaper Le Progrs: "We were trying to get in between the customers but they were pushing us."

All of its stock was snapped up within 15 minutes and one customer was given a black eye, the report adds.

Similar scenes have been reported across France, with some being described as "riots".

The hunt for discounted jars continued on Friday, with shoppers in a supermarket near Toulouse being handed just one each.

a.Explain clearly what this tells us about the elasticity of the product.

b.Sketch a supply-demand curve to explain what happened.