Unit 9: Price Elasticity Of Demand

Question 0

Inelastic demand

Answer 0

Where the price elasticity of demand is less than 1. The responsiveness of demand is proportionally less than change in price. Demand is infinitely in elastic if the price of elasticity of demand is zero.

Question 1

Elastic Demand

Answer 1

Where the price of elasticity of demand greater than 1. The responsiveness of demand if proportionally greater than the change in price. Demand is infinitely elastic if price elasticity of demand infinity.

Question 2

Price elasticity of demand

Answer 2

The proportionate response of ConAgra in quantity demanded to a proportionate change in price measured by the formula:
P ^Qd
— x —–
Q ^P

Question 3

Unitary elasticity

Answer 3

Where the value of price elasticity of demand is 1. The responsiveness of demand is proportionally equal to the change in price.

Question 4

Elasticity

Answer 4

Measure of the extent to which quantity responds to a change in varie which affects it, such as price or income.