Problem:
Elasticity refers to the responsiveness of one economic variable to changes in another, related variable. Consider the price elasticity of demand (or cross price elasticity), please use at least one example to explain the impacts of elasticity of demand (or cross price elasticity). In your example, please explain how the elasticity of demand affects the business strategies / government regulations. Also please provide your own analysis to address the issue whether they are good choices/strategies. You can find additional examples from the Wallstreet Journal, BusinessWeek, and other publications with great reputation.