5.2 Flashcards
1
Q
What is Perfect Elasticity?
A
Any price change leads to an infinite quantity change (horizontal curve).
2
Q
What is Perfect Inelasticity?
A
Price changes do not affect quantity (vertical curve).
3
Q
What characterizes Constant Unitary Elasticity?
A
The demand curve is curved.
4
Q
What is the shape of the supply curve in Constant Unitary Elasticity?
A
The supply curve is a straight line from the origin.
5
Q
What is constant unitary elasticity?
A
When a price change of one percent results in a quality change of one percent
