1. Burt is a beekeeper who sells honey. Suppose that when Burt increases his price by 7%, the quantity demanded of honey decreases by 9%.
   1. What is the price elasticity of demand for Burt's honey?
   2. Will Burt's revenue rise or fall due to this increase in price?
   3. Hilda, a neighbor of Burt, collects tree sap and produces maple syrup. Suppose that when Burt raises his price by 7%, the quantity demanded of Hilda's maple syrup increases by 3%. What is the cross-price elasticity of demand for Hilda's maple syrup?What is the relationship between Burt's honey and Hilda's maple syrup, if any? Briefly explain your answer.
   4. Suppose that an economic expansion causes area incomes to rise by 5%. Due to this increase in income, the quantity demanded of Burt's honey rises by 3% and the quantity demanded of Hilda's maple syrup rises by 8%. Are honey and maple syrup normal or inferior goods? Does it appear that consumers in the area view honey and maple syrup as necessities or luxuries? Briefly explain your answers.