Concept Check Questions. Please answer following questions very briefly in a few words.

1. What is the concept of elasticity of demand? Does it apply only to the demand side of markets? 2. Provide two examples of items for which demand curve is perfectly inelastic? 3. If a 3% change in price of an item leads to a 5% change in its quantity demanded, then what can be said about the demand of that items? 4. If the demand for an item is elastic and its price rises, what will be the impact on total revenue? 5. What effect is a three-cent-per-litre increase in the price of gasoline likely to have