Elasticity

Question 0

Elastic demand graph

Answer 0

Shallow gradient

Question 1

Price elasticity of demand

Answer 1

The responsiveness of demand to a price change

Question 2

Inelastic demand graph

Answer 2

Steep gradient

Question 3

Inelastic demand numbers

Answer 3

-1 to 0

Question 4

Elastic demand numbers

Answer 4

Less than -1

Question 5

Perfectly elastic products occur when

Answer 5

Goods are identical so a small change in price would have an infinite change in demand.

Question 6

Perfectly inelastic is when

Answer 6

Quantity never changes, it will always be bought

Question 7

Determinants of elasticity

Answer 7

Substitutes
Proportion of income - how expensive
Luxury - do without
Addiction
Time - an idiot in a hurry

Question 8

Substitute closeness

Answer 8

How similar a substitute is

Question 9

Substitute availability

Answer 9

How available are other substitutes

Question 10

Improve revenue on inelastic products

Answer 10

Raise prices

Question 11

Improve revenue on elastic products

Answer 11

Lower prices

Question 12

Inferior goods are related to income

Answer 12

Inversely

Question 13

Normal goods are related to income

Answer 13

Positively

Question 14

Inferior numbers

Answer 14

Less than 0

Question 15

Normal numbers

Answer 15

Greater than 0

Question 16

Complements cross price elasticity

Answer 16

Negative

Negatively related

Question 17

Substitutes cross price elasticity

Answer 17

Positive

Positively related

Question 18

Inelastic supply numbers

Answer 18

0 to 1

Question 19

Elastic supply numbers

Answer 19

More than 1

Question 20

Factors that effect elasticity of supply

Answer 20

Stocks availability - can it be stored
Availability of production factors
Time - more time more elastic