Describe six factors which affect the price elasticity of demand for goods and services. Give examples for each.(80words)
2. If the income elasticity of demand for a good is -1, what sort of good is it likely to be? Give an example. (80words)
3. What do we call a good or service if demand increases when income increases? What range would the income elasticity of demand fall into? Give an example. (80words)
4. Give an example of two goods and/or services in the tourism sector which would have negative cross-price elasticity. What are these goods and services called? (80words)
5. There are two cafés side by side in Broadbeach Mall. Café A lowers its price for a standard coffee from $4 to $3. What would happen to the quantity demand at Café B. What range would you expect the cross-price elasticity to be in? (80words)
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