elastic/inelastic demands Flashcards
1
Q
elastic demand
A
a small change in price means a large change in demand.
ex.cereal, coffee, drinks
2
Q
inelastic demand
A
a large change in price means little to no change in demand
ex.meds
3
Q
determinents of demand for elasticity
A
substitutes, luxury vs necessity, time, share of consumers budget
4
Q
substitutes
A
many subs= elastic
not many subs= inelastic
5
Q
luxury vs necessity
A
luxury= more elastic (you don’t need it)
necessity= more inelastic (you NEED it)
6
Q
time
A
no time= inelastic (you need it now)
have time= elastic( you have time to do it)
7
Q
share of consumers budget
A
if you have to spend a large sum of money= elastic
you don’t have to spend a lot of money= inelastic
