1. How do we measure how much consumers alter their purchases in response to a price change?

2. Why are measurements of elasticity important?

3. How does a business determine whether to increase or decrease the price of the product it sells in order to increase revenues?

4. Why might senior citizens or children receive price discounts relative to the rest of the population?

5. What determines whether consumers alter their purchases a little or a lot in response to a price change?

6. How do we measure how much income changes, changes in the prices of related goods, or changes in advertising expenditures affect consumer purchases?

7. How do we measure how much producers respond to a price change?