Elasticity Flashcards
1
Q
What is elasticity of demand
A
Measures how sensitive quantity demand is to change of demand
2
Q
Inelastic demand
A
Insensitive to a change in price
3
Q
Why are products inelastic
A
Very little amount of substitutes
4
Q
Elastic demand
A
Quantity is sensitive to a change in price
5
Q
What makes products elastic
A
If the good is subject to habitual consumption
Peak and off peak demand
