1. Draw the demand curve for trucks, a normal good. Illustrate the impact of a decrease in the price of the substitute, cars.
2. Draw the curve for ranch dressing, a normal good. Illustrate the impact of a decrease in the price of the substitute, Italian dressing.
3. Draw the demand curve for heating oil. Illustrate the impact of an anticipated decrease in heating oil prices.
4. Define "elasticity of demand".
5. What does it mean if a good exhibits elastic demand? Provide some examples of goods whose demand is likely to be elastic.
6. What does it mean if a good exhibits inelastic demand? Provide some examples of goods whose demand is likely to be inelastic.
Enjoy the long weekend and the holiday if you are observing!
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