elasticity Flashcards
1
Q
elastic demand
A
above 1 and below infinity
total revenue increases when price falls
2
Q
inelastic demand
A
below 1 and above 0
when price increases total revenue increases
3
Q
unitary elasticity
A
1
if price changes revenue stays the same
4
Q
perfect inelastic demand
A
0
5
Q
perfectly elastic demand
A
infinite
