ECO201 - Professor Elliott Spring, 2024 15) Why is the elasticity of demand for automobiles 1.5 when and the elasticity of demand for a particular make of car such as Chevy 4? 16) Would we call a good that has a high elasticity of demand a luxury good? Why? 17) What is a price ceiling? Is it ever efficient? Why or Why not? 18) What is a price floor? Is it ever efficient? Why or Why not? 19) If we argue that a price above equilibrium is inefficient, why would we ever pursue such a policy? 20) Assume that a serious infection of the E-coli bacteria strikes the US severely restricting the supply of hamburger in this country. A. What do we expect to happen to the equilibrium price of hamburger in this country? B. What happens to the demand for Turkey-burger? C. What happens to the equilibrium price of Turkey-burger? D. What happens to the equilibrium quantity of Turkey-burger sold? 21) True, false, or uncertain: If demand is inelastic a firm can increase its revenue by increasing the price it charges for its good. 22) What causes a change in supply? 23) What causes a change in the quantity