Elasticity Flashcards
perfectly inelastic (elasticity of demand)
elasticity equals zero and is insulin something you need (does not matter how much it costs)
perfectly elastic (elasticity of demand)
elasticity equal infinity
inelastic (elasticity of demand)
elasticity equals to less than one, gasoline becasue even if the price increases people will still buy it
elastic (elasticity of demand)
elasticity equals to greater than one, price of a car goes up you have many more options
income elastic
positive and greater than one and normal good
income inelastic
positive and less than one, and normal good
income negative elastic
inferior good
cross elasticity (negative)
complements
cross elasticity (positive)
substitutes