a. You work for Econ Bikes and invested millions in a new triathlon bike. It sells poorly, and survey data suggest customers dislike the bike design. A coworker states Econ Bikes should continue to invest and promote the bike because of all the money you have already spent on it. What do you comment back to your coworker? (Specific economic term).

b. What is more elastic, the iPhone or the entire category of smartphones? Explain.

c. Econ Ball Co increases the price of their basketballs by 20%. They find the price elasticity of demand is -2.5. How much did quantity change, and did it go up or down from the price change?