6 Questions
What type of demand is characterized by a large change in demand when there is a change in price?
Elastic demand
If the price elasticity of a good is exactly 1, what type of elasticity does the good exhibit?
Unitary elasticity
What type of good has a price elasticity of 0 where no amount of price change produces a change in demand?
Perfectly inelastic good
How is the availability of substitutes related to the elasticity of a product?
Availability of substitutes makes a product elastic
If a good is perfectly elastic, what is its price elasticity value?
Infinite
What type of demand is characterized by a small change in demand when there is a change in price?
Inelastic demand
Test your knowledge on the concept of price elasticity of demand and its implications for different types of demand such as elastic and inelastic. Understand how the change in demand correlates with changes in price.
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