1. In what instances can you have an upward sloping demand curve, meaning the higher the price, the more quantity is demanded?Give an example of such a product and elaborate why this phenomena exist?

2.Describe the probable shifts in the demand curves for

1. Airplane trips when airlines' on-time performance improves
2. Automobiles when airplane fares double
3. Automobiles when gasoline prices double
4. Electricity the Sunbelt states of United States (swath of states from California, Arizona, New Mexico, Texas, the Deep South, to Florida) when the average temperature in this part of the country rises during a particular year (Note: homes and buildings in the Sunbelt states are generally not heated in the winter months but are airconditioned in the summer months)

3.A rise in the price of a certain commodity from $20 to $25 reduces quantity demanded from 25,000 to 10,000 units. Calculate the price elasticity of demand.

4.If the price elasticity of demand for gasoline is 0.3 and the current price is $3.20 per gallon, what rise in the price of gasoline will reduce its consumption by 10 percent?

5.Which of the following product pairs would you expect to be substitutes, and which would you expect to be complements?

1. Shoes and sneakers
2. Gasoline and sport-utility vehicles
3. Tacos and hot sauce