Interpreting Elasticity

Discuss the relevant elasticity for two of the following scenarios in separate posts. In your answer, comment on what determines that elasticity classification. Respond substantively to a minimum of two other students.

= Consider the demand for gasoline. When the price of gasoline increases by a relatively large amount, the quantity of gasoline purchased falls by a relatively small amount.

= Consider the market for cigarettes. When a 200% tax is imposed on the consumers of cigarettes, quantity demanded falls by 60%.

= Consider the demand for children. People who have higher incomes have fewer children on average. People with lower incomes have more children on average.

= Consider the market for soap. How would you determine if soap and shampoo are competitors?