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4. For each of the following goods, indicate whether you expect demand to be inelastic or elastic, and explain your reasoning: opera: elastic (many substitute entertainments, a luxury) foreign travel: elastic (local, national travel are substitutes, a luxury) local telephone service: elastic (everyone has a cell phone) DVD rentals: elastic (many substitute entertainments) eggs: inelastic (no close substitutes, a staple food) 5. You observe a positive relationship between the price that your store charges for CDs and the total revenue from CDs. Is the demand for your CDs elastic or inelastic?
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