1. Suppose goods X and Y are substitutes.If the price of X increases, will the demand for good Y increase or decrease?Explain using complete sentences.
2. Use the concepts we have learned about international trade to justify why the U.S. might want to protect a new industry that produces communication equipment necessary for the operation of fighter jets.Explain using complete sentences.
3. Suppose demand is given by the equation:

QD=100 - 5P

Using the midpoint method (please show your work), what is the price elasticity of demand between $1 and $2?