1. circle the good in the following pairs that is likely to have more elastic demand. explain your answer.

a. diet caffeine-free Pepsi/ soda

b. table salt/ filet mignon

c. bottled water/ tap water

d. LED Tvs/ televisions

1. calculate the percentage change in price for the following situations. be sure to state whether the price is falling or rising.

a. elasticity of demand is 1 and elasticity of supply is 2. demand increases 30%.

b. elasticity of demand is 1.5 and elasticity of supply is 0.5. demand increases 10%

c. elasticity of demand is 2 and elasticity of supply is 1. supply increases 30%