The Price Elasticity of Demand

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Read Chapter 4 to answer the questions below. Identify the determinants of the price elasticity of demand. Explain each one.
Determine whether each of the following items is elastic or inelastic: bottled water, gourmet coffee, Apple cell phones, and gasoline. Explain your reasoning.
Distinguish between a necessity and a luxury.
How are the price elasticity of demand and total revenue related? Why is the price elasticity of demand important to pricing?
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