Elasticity Flashcards

1
Q

perfectly inelastic (elasticity of demand)

A

elasticity equals zero and is insulin something you need (does not matter how much it costs)

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2
Q

perfectly elastic (elasticity of demand)

A

elasticity equal infinity

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3
Q

inelastic (elasticity of demand)

A

elasticity equals to less than one, gasoline becasue even if the price increases people will still buy it

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4
Q

elastic (elasticity of demand)

A

elasticity equals to greater than one, price of a car goes up you have many more options

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5
Q

income elastic

A

positive and greater than one and normal good

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6
Q

income inelastic

A

positive and less than one, and normal good

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7
Q

income negative elastic

A

inferior good

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8
Q

cross elasticity (negative)

A

complements

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9
Q

cross elasticity (positive)

A

substitutes

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