PROJECT DESCRIPTIONThis project has three parts, namely Part 1, Part 2, and Part 3.Project Part 1: Different economic studies estimate the price elasticity of demand for certain goods, some of which are reported on page 176 of the Hubbard/O?Brien. The following table presents select elasticity of demand estimates from those reported on page 176. Product Estimated ElasticityBarnes & Noble books-4.00Coca-Cola-1.22Cigarettes-0.25Beer-0.23Gasoline-0.06In your project, address the following questions: Using the elasticity estimates in the table above, classify the price elasticity demand as elastic or inelastic. Explain your reasoning. Explain the implications of those classifications on tax revenue collections when the per-unit tax increases as opposed to decreases. Using those classifications, make some assumptions regarding tax incidence. For instance, will buyers or sellers pay aportion of the tax per unit? Explain. Conclude, based on the elasticity classifications, their effect on tax revenue and tax incidence, and which goods the government would prefer to tax.Type your question here