price elasticity of demand

Question 1

the demand changes when price changes

Answer 1

price elasticity of demand

Question 2

more substitutes - butter vs margin
less substitutes - eggs

Answer 2

elastic
inelastic

Question 3

big change

Answer 3

elastic

Question 4

small change

Answer 4

inelastic

Question 5

necessities - doctor visits
luxuries - sailboats

Answer 5

inelastic
elastic

Question 6

broad market - food
narrow market - ice cream

Answer 6

inelastic
elastic

Question 7

short term
long term

Answer 7

inelastic
elastic

Question 8

elasticity > 1
quantity demanded moves less than the price
ex.: gas

Answer 8

inelastic demand

Question 9

elasticity < 1
quantity demanded moves more than the price
ex.: cars

Answer 9

elastic demand

Question 10

elasticity = 1
quantity demanded moves equal to the price
ex.: film tickets

Answer 10

unit elastic demand

Question 11

elasticity = 0
quantity demanded moves equal to the price
ex.: air

Answer 11

perfectly inelastic

Question 12

elasticity = infinity
quantity demanded is either zero, infinite or just right
ex.: luxury cars

Answer 12

perfectly elastic

Question 13

low price, high quantity -
high price, low quantity -
middle of curve -

Answer 13

inelastic
elastic
unit elastic