Use an elasticity concept to explain each of the following observations.
Question 1: During economic boom times, the number of new personal care businesses, such as gyms and tanning salons, is proportionately greater than the number of other new business such as grocery stores.
Question 2: Cement is the primary building material in Mexico. After new technology makes cement cheaper to produce, the supply curve for the Mexican cement industry becomes relatively flatter.
Question 3: Some goods that were once considered luxuries, likea telephone, a new considered virtual necessity. As a result the demand curve for telephone service has become steeper over time.
Question 4: Consumers in a less developed country like Guatemala, spends proportionately more of their income on equipment for producing things at home like sewing machines, than consumers in a more developed country like Canada.