1. Define elasticity and explain why it is important for economists to understand.
2. What are normal goods and inferior goods? Discuss within the context of income elasticity of demand.
3. Define cross-price elasticity of demand and discuss within the context of complementary goods and substitute goods.

1. Define elasticity and explain why it is important for economists to understand. 2. What are normal goods and inferior goods? Discuss within the context of income elasticity of demand. 3. Define cross-price elasticity of demand and discuss within the context of complementary goods and substitute goods