1)For each of the following products, state whether you think the demand is elastic or inelastic, and your rationale

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1)For each of the following products, state whether you think the demand is elastic or inelastic, and your rationale.

a) Gasoline

b) Allergy medication

c) Chocolate bars

d) Cell Phones

e) Milk

Under what types of market structure would you classify the following industries? Please explain your rationale.

a) Canadian beer industry

b) Hot Dog Vendor Markets

c) Cable television industry (Oakville market)

d) Canadian airline industry

2)

• Calculating the price elasticity of supply

Eric is a retired teacher who lives in Saint John and provides math tutoring for extra cash. At a wage of $45 per hour, he is willing to tutor six hours per week. At $60 per hour, he is willing to tutor eight hours per week. Using the midpoint method, the elasticity of Eric's labor supply between wages of $45 and $60 per hour is _, which means that Eric's supply of labor over this wage range is _.