An elasticity value that's >1 will mean that for every drop
in spend power, there will be a more than proportionate drop in
quantity demanded (not demand!) of the good/service in
question.
The reverse is true for an elasticity value <1.
That's what the question is looking for, but you must input your
own values and calculate the effects to prove the above
statement.
Add-on: If you want to score more, you can add to your
answer the overall effect on your spending pattern on all 4
types. ;)
