III.Elasticity, in economics, is a measure of the responsiveness of one economic variable to another. 9. Assume there is a well-defined geographic area of a city. The area is composed exclusively of apartments and is populated by low-income residents. The people who live in the area tend to stay in that area because (1) they cannot afford to live in other areas of the city, (2) they prefer to live with people of their own ethnic group, or (3) there is discrimination against them in other areas of the city. Rents paid are a very high percent of peoples' incomes. a. Would the demand for apartments in this area be relatively inelastic or relatively elastic? State why. b. Would the supply of apartments in this area be relatively inelastic or relatively elastic? State why. c. Draw the demand and supply curves as you have described them, showing the initial equilibrium price and quantity