Price Elasticity

Using the calculation of: price elasticity of demand= (percentage change in quantity)/(percentage change in price) When the percentage change in the quantity that is demanded is greater than the percentage change in the price, the resulting absolute value of the calculation will be greater than 1. The first two products, Barnes and Noble books and Coca-Cola, will therefore have an elastic demand classification. When the percentage change in the quantity that is demanded is less than the percentage change in the price, the resulting absolute value of the calculation will be less than 1. The last three products of Cigarettes, Beer, and Gasoline; will therefore have an inelastic demand classification. (R. Glen Hubbard, 2012) Explain the implications of those classifications…