Changes

'''4. Why is the name "necessity" given to a good that has a price elasticity of less than one, and the name "luxury" given to a good that has a price elasticity of more than one?'''

'''4. Why is the name "necessity" given to a good that has a price elasticity of less than one, and the name "luxury" given to a good that has a price elasticity of more than one?'''

When the price elasticity is low, generally it is a good that people ''need'', such as food, fuel, or shelter,and will pay more for   

When the price elasticity is low, generally it is a good that people ''need'', such as food, fuel, or shelter,and will pay more for. In the equation, the change in Q is a smaller number than the change in P, so it is a proper fraction (<1).  A luxury is something that people ''want'', not really need, so they can do without it if the price goes up.  The change in Q is larger than the change in P, so it will be an improper fraction (>1).  

'''5. What is a substitute for french fries, and what is a complement for them?

'''5. What is a substitute for french fries, and what is a complement for them?'''

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'''6. Give an example of a "normal" good, and an example of an "inferior" good.

 

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'''6. Give an example of a "normal" good, and an example of an "inferior" good.'''