1-If the price of milk increases by 20% and the quantity of demand for milk decreases by 4%, answer:

a-Will this product have an easy or hard-to-find substitute? Why?

2- The quantity demanded by product A increases 8% when the price of product B increases 16% and the other variables remain the same.

a-Calculate the cross elasticity of demand. Products A and B, are they complementary or substitutes? Why?

b-By drawing a graph, show the change in the demand curve for product A as a result of the change in the price of product B.

3- Can it be possible that for a particular product the demand curve is perfectly inelastic, regardless of price? Explain your answer in detail.

4A company increases the price of its product from $ 210 to $ 240 per unit and keeps 30,500 units of this product in stock each month.

a-Is elasticity elastic, inelastic, perfectly inelastic, or unitary? Why?

5-What is the income elasticity of demand and how is it measured? Explain with an example