Elasticity

What does it mean?

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

What does it mean?

Ed = ∞

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

What does it mean?

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

What does it mean?

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

What does it mean? % change in Qd = % change in P

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

Why does demand generally become more elastic over time?

• People don't change their shopping behavior over time.

• Few substitutes become available.

• People buy more products over time.

• People have time to find substitutes and change behaviors.

Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.

• elastic

• unitary elastic

• inelastic

• hyperelastic

What is price elasticity of demand?

• A measure of how much the quantity demanded of a good responds to a change in the price of that good

• A measure of how much the quantity supplied of a good responds to a change in the price of that good

• A measure of how much the quantity demanded of a good responds to a change in consumer income

• A measure of how much the quantity supplied of a good responds to a change in consumer income

Which of the following is an example of perfectly inelastic demand?

• A luxury car

• A life-saving medication

• A smartphone

• A designer handbag

If the price elasticity of demand for a product is greater than 1, what does this indicate?

• Demand is perfectly inelastic

• Demand is inelastic

• Demand is unitary elastic

• Demand is elastic