Elasticity of Demand

Front

When the elasticity coefficient is equal to 1, price elasticity is

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Unit Elastic

Front

When the elasticity coefficient is less than 1, price elasticity is

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Inelastic

Front

The graph of an Inelastic Demand curve is

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Downward-sloping, almost Vertical

Front

For a certain good, a 20% increase in its price resulted in a 5% decrease in its Quantity Demanded. What is the type of Elasticity and what is it equal to?

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Inelastic... Elasticity = 0.25

Front

If Dairy Queen lowered the price of its Blizzard by 20% and Blizzard is said to be Price Elastic, then Quantity Demanded will increase by

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Greater than 20%

Front

The formula for calculating elasticity of demand is:

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The % change in quantity demanded over the % change in price

Front

Which of the following is not a determinant of demand elasticity? availability of substitutes, share of consumer's budget spend on good, if the purchase can be delayed, government spending

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government spending

Front

Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is

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$-1$

Front

The price elasticity of demand measures how much

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quantity demanded responds to a change in price.

Front

Which of the following has more inelastic demand?

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