Introduction to Price Elasticity of Demand

Which of the following is not one of the types of elasticity we are going to cover in this course?

• Price elasticity of demand

• Income elasticity of demand

• Cross elasticity of demand

• Business elasticity of demand

• Price elasticity of supply

A measure of how much the quantity demanded changes in response to a change in price of that good

• Price elasticity of demand

• Income elasticity of demand

• Cross elasticity of demand

• Business elasticity of demand

A measure of how much buyers and sellers respond to changes in market conditions.

• PED

• Elasticity

• Change in demand

• Change in quantity demanded

What does this symbol mean in Economics (and maths)

• Sum

• Variable

• Change

• Delta

How would you describe this shopper's behaviour?

• Stable

• Elastic

• Inelastic

• Cheap

How would you describe this shopper's behaviour?

• Wealthy

• Elastic

• Inelastic

• Cheap

What would most likely be the behaviour of someone who shops for butter?

• Wealthy

• Elastic

• Inelastic

• Cheap

Chryssa notices the price of butter has increase and substitutes it by purchasing margarine instead. Chryssa's demand is:

• Weird

• Elastic

• Inelastic

• Non-responsive

Regina has diabetes and notices the price of insulin has increase by 100%. Her demand for insulin is most likely:

• Weird

• Elastic

• Inelastic

• Non-responsive

The price of rubber bands have increased from 5₵ to 10₵. Demand would most likely be:

• Weird

• Elastic

• Inelastic

• Non-responsive