2. Due to rising unemployment, bike sales are rising across the USA. The bike industry estimates that, all else equal, a 1% fall in average income leads to a 1.5% increase in the sale of bicycles. Calculate, interpret and explain the YED for bicycles. 3. The PED coefficient is always negative. Why? The law of demand states ceteris paribus, there is an inverse relationship between price and quantity demanded. Due to this INVERSE relationship, the PED coefficient will always be negative. 4. The PES for aluminum is 0.1 in the short-run, but 2.1 in the long-run. What are the factors that explain the change in PES over time for aluminum specifically. 5. When Ryan Air began flying between London and Paris the price of air travel between the two cities fell from an average of 100 euros each way to just 60 euros each way. As a result, the EuroStar high speed rail line saw its annual ticket sales fall from 800,000 to 720,000 tickets. Calculate, interpret and explain the XED for air travel and train travel between London and Paris. 6. As the Chinese economy grows, car sales are rising exponentially. In the last decade, the number of cars on Chinese roads has increased ten-fold, as the per capital income in China has risen from $1,000 to $4,000. Calculate, interpret and explain the YED for cars in China