Select a product market that is of interest to you. Use what you know about this industry and knowledge from this course to answer the questions below.

1. a. Do you believe that the demand for this market is elastic or inelastic? Explain why.

b. Provide an estimate of price and quantity sold in a recent period for this industry based on available data or estimates.Use whatever parameters are available (i.e. for a recent year for a specific market like Canada, U.S. or global).You need only one price and one quantity.

c. Using the price and quantity you've identified, consider what would happen if this price were to increase by 10%. Estimate the new industry quantity based on your statement in answer a. about whether or not this industry would be elastic or inelastic. Calculate the elasticity coefficient based on your price and quantity estimates and the industry revenue before and after the price increase. Do not use data from two different periods. Just consider one price/quantity combination and look at what would happen to that quantity if there were a 10% price increase.

(4 marks)