elasticity of demand

Question 1

what is price elasticity of demand

Answer 1

how sensetive a products demand is to changes in price

Question 2

what does it mean if a product is price inelastic

Answer 2

demand does not change depending on changes in price

Question 3

give examples of products that would be price inelastic and why

Answer 3

Examples of products that would be price inelastic would be products such as toilet paper or train tickets as these products are nessesities

Question 4

what is price elastic

Answer 4

products where their demand is highly sensetive to changes in price

Question 5

if the elasticity of a products is -0.5 is it elastic or inelastic

Answer 5

This product would be price inelastic because the number is less than one. If it was to be over 1 then it would be elastic

Question 6

what is the equasion to find price elasicity

Answer 6

change in quantity demanded / changes in price

Question 7

what does it mean for a product to be income elastic

Answer 7

demand is sensetive to changes in income

Question 8

what does it mean for a product to be income inelastic

Answer 8

demand is not sensetive to changes in income

Question 9

give an example of a type of product that would be income elastic

Answer 9

expensive high quality products and when income falls less people would be able to afford them and demand would decrease. Then if income increases demand would also increase.

Question 10

what is the equasion for income elasticity

Answer 10

change in quantity demanded/chnages in income