demand

Question 1

price elastic demand

Answer 1

ped > 1 (greater than 1)
if price changes, quantity demanded changes a lot (luxuries, non essentials)

Question 2

price inelastic demand

Answer 2

ped < 1. even if price changes, demand changes a little
bread, petrol

Question 3

price unitary elasticity

Answer 3

ped = 1
perfect balance, % change in price = % change in quantity

Question 4

YED luxury goods

Answer 4

yed >1
increased income means more spending
(designer bags, holidays)

Question 5

YED normal goods

Answer 5

yed greater than 0 but less 1
clothes and electronic goods
more money means more spending

Question 6

inferior goods YED

Answer 6

yed less than 0
more money means less buying
instant noodles, second-hand clothes

Question 7

XED substitutes

Answer 7

XED greater than 0,
coke price increase, demand for substitute pepsi rises

Question 8

complements XED

Answer 8

xed less than 0.
printers get cheaper, it’s compliment ink will see increase in demand