a) CROSS ELASTICITY OF DEMAND: What would happen to the market demand for beer if the price of basic wine increased by 30%? You might want to distinguish between different types of beer. (Your answer should show you understand the concept of cross elasticity of demand,and that you read the textbook.)

b) INCOME ELASTICITY OF DEMAND: What would happen to the demand for fur coats if income went down by 20% What would happen to the demand for underwear if income went down by 20%. Again, you might want to distinguish different types of product within each category. (Your answers should reflect your knowledge of income elasticity of demand)

c) ADVERTISING ELASTICITY OF DEMAND:(1) What is "advertising elasticity of demand?"(2) What would happen to the demand for fur coats if advertising for the product went up by 25%(3)What would happen to the demand for underwear if advertising for the product went up by 25%. Again, you might want to distinguish different types of product within each category.