Elasticity of demand depends on a number of factors, including whether the product in question is a necessity (need) or a luxury (want). This letter illustrates the elasticity of one person's demand in the face of a large price increase. Dear Hayseed Milk Delivery Service: I just learned that you have doubled the price of your milk. I am shocked! My children drink so much milk that I really cannot arford this price hike. so, please continue to leave me four gallons of milk each week, but cancel my weekly order for the seven quarts of superfudge ice cream. sincerely, Mable Lastic 6. what quantity of milk did Mable demand before the price increase? After the price increase? Before: After: 7. What quantity of Superfudge 1ce cream did Mahle demand before the price increase for milk? After the price increase? Before: After: 8. How would you describe the elasticity of Mable's demand for milk (elastic or inelastic)? Explain your answer.

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