Explain your answer whenever possible. Show necessary steps and reasoning. Writelegibly1. For each of the following pairs of goods, which good would you expect to havemore elastic demand and why? Refer to determinants of price elasticity of demandin your notes.a. required textbooks or mystery novels.Price2. Suppose that business travelers and vacationers have the following demand forairline tickets from New York to Boston$150200b. Beethoven recordings or classical music recordings in generalc. subway rides during the next 6 months or subway rides during the next 5250300yearsd. root beer or waterQuantity Demanded(business travelers)2,100 tickets2,0001,9001,800Quantity Demanded(vacationers)1,000 tickets800600400a. As the price of tickets rises from $200 to $250, what is the price elasticity ofdemand for (i) business travelers and (ii) vacationers? (Use the midpoint methodin your calculations.b. Why might vacationers have a different elasticity from business travelers8. Consider public policy aimed at smoking.a. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If apack of cigarettes currently costs $2 and the government wants to reduce smoking by 20percent, by how much should it increase the price?c. If the government permanently increases the price of cigarettes, will the policyhave a larger effect on smoking 1 year from now or 5 years from now?d. Studies also find that teenagers have a higher price elasticity than do adults. Whymight this be true?

1) Since mysteries are less necessary than textbooks, the demand elasticity for mysteries is…

1. For each of the following pairs of goods, which good would you expect to have more elastic demand and why? Refer to determinants of price elasticity of demand in your notes. 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 travelers and vacationers have the following demand for airline tickets from New York to Boston