a) What is the price elasticity of demand? Mention four factors that affect the price elasticity of demand.
b) Explain what we mean by the demand is elastic, inelastic, unit elastic, perfectly inelastic, perfectly elastic.
c) Give THREE examples from your life that can be applied to each case of price elasticity (elastic, inelastic, perfectly inelastic).
d) Are airline tickets more expensive a few months before the flight or one day or several hours before the plane takes off? Explain your answer.