文档介绍：1. For each of the following pairs of goods, which good would you expect to have more elastic demand and why? a. required textbooks or mystery novels b. Beethoven recordings or classical music recordings in general c. subway rides during the next 6 months or subway rides during the next 5 years d. root beer or water 2. Suppose that business travellers and vacationers have the following demand for airline tickets from New York to Boston: Price Demand (business travellers) Demand (vacationers) 150 2,100 1,000 200 2,000 800 250 1,900 600 300 1,800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travellers and (ii) vacationers? (Use the midpoint method in your calculations.) b. Why might vacationers have a different elasticity from business travellers? 3. Suppose the price of elasticity of gasoline is in the short run and in the long run. a. If the price ofa gallon of gasoline falls from $ to $, what happens to the quantity of gasoline demanded in the short run? In the long run? (Use the midpoint formula in your calculations.) b. Why might the elasticity of demand for gasoline depend on time horizon? 4. Consider public policy aimed at smoking. a. Studies indicate that the price elasticity of demand for cigarettes is about . Ifa pack of cigarettes costs $2 and the government wants to reduce smoking by