Solution

1.     Price Elasticity: The concept of price elasticity measures how responsive the quantity demanded or supplied of a good is to changes in its price. Elastic demand or supply means that quantity significantly changes in response to price changes, while inelastic demand or supply means quantity changes only slightly in response to price changes.   Demand Elasticity : Demand elasticity, often referred to simply as "elasticity," is a measure of how responsive the quantity demanded of a good or service is to changes in its own price. It quantifies the sensitivity of consumer demand to price fluctuations. The formula for demand elasticity is: Elasticity = (% Change in Quantity demande)/(% change in price)