1. What is meant by quot;price elasticityquot; of demand? Suppose the price elasticity of demand for used cars is estimated to be 1.5. What does

1. What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for used cars is estimated to be 1.5. What does this mean in term of responsiveness of demand? Discuss

Discuss.

2. You are on the Board of Bronx Museum with the responsibility to raise admission fees for the Museum. You would recommend increasing the admission price only if you thought the demand curve for the Bronx Museum was:

a. Inelastic

b. Elastic

c. Unitary elastic

d. Perfectly elastic

Discuss.

Instructions:

Don't simply give your answer.

Use grading rubrics and defend your choice from the perspective of a Manager. 

a. Define the term

b. Offer an example

c. Next, explain

d. Try to relate the concept to previous work/assignment(s)