1.2.4 - theme 1 Flashcards
(5 cards)
1
Q
What is Luxury?
A
Goods that consumers like to buy if they can afford them e.g. air travel and fashion items
2
Q
What is Necessity?
A
Basic goods that consumers need to buy e.g. food, electricity and water
3
Q
What does Price elastic mean?
A
Quantity demand is responsive to a change in price
4
Q
What is Price elasticity of demand (PED)?
A
Measures the responsiveness of quantity demanded to a change in price. Always negative due to laws of demand.
5
Q
What does Price Inelastic mean?
A
Quantity demanded for the product is less responsive proportionately to a change in price
