Our economy is experiencing an economic downturn worse than 2008.

A. State one market that has experienced a decrease in the price and quantity of their goods (i.e. a decrease in demand). State whether the good or service in this market is a luxury, necessity, or inferior good and also whether its price elasticity is elastic or inelastic.

B. For the above market that has experienced a decrease in demand related to our current recession, describe at least one way that companies within this market have attempted to (or have successfully) adjusted to help improve their situation. If the companies have not seemed to have adjusted state why you believe this is the case?

C. Describe a market that has experienced an increase in demand during this recession. State whether the good or service in this market is a luxury, necessity, or inferior good and also whether its price elasticity is elastic or inelastic.