A-2.1 Define demand elasticity. Give formula. Defend your formula
 by proving why it must not be an absolute measure and why it
 must be calculated at mid-point.

A-2.2 Explain the relationship between elasticity of demand and
 total revenue of a firm.

A-2.3  Define demand elasticity. Present graphically various possible
 values. Identify what determinants contribute to a given
 elasticity value.

A-2.4 Define supply elasticity. Present in a graph various possible
 supply elasticity values. Identify the determinants of
 supply elasticity.

A-2.5 Study the case of a price ceiling (such as rent control).
 Show how elasticity is useful to predict future developments.

A-2.6 Study the case of a price support (such as farm prices). Show
 how elasticity is useful to predict future developments.

A-2.7 Use a graph to show how demand elasticity and supply elasticity
 are helpful to study the incidence of a sales tax. Comment on
 the effectiveness of revenue seeking and sumptuary taxes.

A-2.8 Empirical studies indicate the following demand elasticities:
 .25 for food and beverages, 3.2 for luxury automobiles, .10 for
 housing, 2.2 for Goodyear tires, and .35 for medical care.
 Using demand elasticity determinants, explain the reason for
 these figures.