1. Define the price elasticity of demand and the income elasticity of demand.
2. List and explain the four determinants of the price elasticity of demand discussed in the chapter.

(3) For each of the following pairs of goods, which good would you expect to have more elastic demand and why?

(A) required textbooks or mystery novels

(B) Beethoven recordings or classical music recordings in general

(C) subway rides during the next 6 months or subway rides during the next 5 years

(D) root beer or water