1. If E = .50 and you want to increase sales by 20% what percentage decrease in price do you need? E = % change in quantity demanded % change in price 2. Why did movie theatres begin charging you as “adults” at age 12? 3. If you are stuck at the end of the season with a lot of clothing and E = 2.0, what percentage decrease in price would you need to increase sales by 60 percent? 4. Why do cereal companies offer coupons that hardly anyone uses? 5. Why can airlines charge business travelers twice the price of vacation travelers? Using the four determinants of price elasticity: 6. Is the demand for last minute cruises likely to be elastic or inelastic? 7. The regional manager is concerned about price cutting by competitors. Your research suggests the cross-price elasticity is +.10. What would you tell the regional manager? 8. Why might the elasticity of demand for Honda cars be 2.0 while the elasticity of demand for cars be .80? 9. Why might consumers’ price elasticity for ice cream cones once they are in an ice cream store be .20 and their longer-term price elasticity be 1.2? 10. Why might college students’ price elasticity for vacation rentals on HHI be 3.0 while active seniors’ price elasticity be 1.0?