1.What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for Newspapers is estimated to be 3. What does this mean in term of responsiveness of demand? Discuss

2.You are on the manager of Bronx Zoowith the responsibility to decreaseannual admission fares. You would recommend a decrease in the monthly fares only if you thought the demand curve for the Bronx Zoo visits was:

a. Inelastic

b. Elastic

c. Unitary elastic

d. Perfectly elastic