1. Explain why we might expect the price elasticity of demand for speedboats to be more negative than the price elasticity of demand for light bulbs.
2. Many business travelers receive reimbursement from their companies when they travel by air, whereas vacation travelers typically pay for their trips out of their own pockets. How would this affect the comparison between the price elasticity of demand for air travel for business travelers versus vacation travelers?
3. Explain why the price elasticity of demand for an entire product category (such as yogurt) is likely to be less negative than the price elasticity of demand for a typical brand (such as Dannon) within that product category