Which of the following pairs of goods would you expect to have the more elastic demand? (a) Water or Diamonds b) Insulin or nasal decongestant spray c) Food in general or breakfast cereal d) Gasoline over the course of a week or gasoline over the course of a year e) Personal computers or IBM personal computers 2. You are a Ford dealer and you know that the price elasticity of demand for Ford cars is 1.5. What will happen to your total revenue from Ford car sales if you raise your price? 3. Suppose a Pizza parlor is interested in increasing total revenue by adjusting its prices should it raise or lower its prices. 4. Which would likely have the less elastic supply, commercial property in New York city or hot dogs in New York city? Why? 5. Peter a fisherman goes out with a boat and a net early morning at 7:00 am. Peter takes his day's catch to the fish market and sells it at the market price. As a result of new info about the beneficial effects of a fish rich diet, the demand for fish increases. How will Peter's supply of fish respond to the increased demand and higher price for his product in the short run and long run? 6. You are an economist working for the telephone company .You discover that demand for phone calls during business is inelastic, and demand for phone calls during evening hours is elastic. How could your company use this information to increase its total revenue?