1. Flavor Flav has released a new exercise DVD for his loyal fans. If he charges $20 he expects to sell 10,000 copies; if he charges $30, he expects to sell 8,000 copies. Calculate the elasticity of demand for this product between those two points. Is this demand elastic or inelastic?

1. Barron used to make $2,500 a month and eat sushi three times per month. Now he is making $3,500 a month and is eating sushi seven times per month. What is Barron's income elasticity of demand for sushi? For Barron, is sushi 1) a normal good or an inferior good, and 2) a necessity or a luxury?