Running Head: ECONOMICS ECONOMICS ECONOMICS 7 7 Economics Name of the Student Name of the University Author note 2013 Answer 1 2 Introduction 2 Analysis 2 Conclusion 4 Answer 2 4 Introduction 4 Analysis 5 Conclusion 5 References 6 Answer 1 Introduction The Price elasticity of demand captures the change in demand in proportion to the change in price. For elastic demand, the demand curve is flatter while for inelastic demand it is steeper (Thomas, Lubinda & Angula, 2015). Figure 1: Different types