move up the demand curve to higher prices and lower quantities, what happens to the measured

elasticity? How would you explain that?

27. Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is,

what is an industry that could increase Qs almost without limit in response to an increase in the price?

28. Would you expect supply to play a more significant role in determining the price of a basic necessity like

food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ

between necessities and luxuries.

29. A city has built a bridge over a river and it decides to charge a toll to everyone who crosses. For one year,

the city charges a variety of different tolls and records information on how many drivers cross the bridge.

The city thus gathers information about elasticity of demand. If the city wishes to raise as much revenue
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