Question

ntity combination listed in the following table. What

relationship have you depicted?

3)

Use an elasticity concept to explain each of the following observations:

a)

Cheaper transit costs into Vancouver’s downtown core will help to keep downtown

shopping centers profitable.

b)

Officials at Canada Post believe that raising rates for bulk postage will raise revenues

for the company.

c)

The cell phone once considered a luxury, have now become virtual necessities. As a

result, the demand curve for cell phone services has become steeper over time.

d)

With the rise in gasoline prices over the years we have also observed an increase in

the number of hybrid cars on the road.

Price

P

Q

E

Answer 1