Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What type of demand is characterized by a large change in demand when there is a change in price?
What type of demand is characterized by a large change in demand when there is a change in price?
- Unitary elastic demand
- Elastic demand (correct)
- Perfectly elastic demand
- Inelastic demand
If the price elasticity of a good is exactly 1, what type of elasticity does the good exhibit?
If the price elasticity of a good is exactly 1, what type of elasticity does the good exhibit?
- Unitary elasticity (correct)
- Elastic
- Inelastic
- Perfectly elastic
What type of good has a price elasticity of 0 where no amount of price change produces a change in demand?
What type of good has a price elasticity of 0 where no amount of price change produces a change in demand?
- Inelastic good
- Elastic good
- Perfectly inelastic good (correct)
- Unitary elasticity good
How is the availability of substitutes related to the elasticity of a product?
How is the availability of substitutes related to the elasticity of a product?
Signup and view all the answers
If a good is perfectly elastic, what is its price elasticity value?
If a good is perfectly elastic, what is its price elasticity value?
Signup and view all the answers
What type of demand is characterized by a small change in demand when there is a change in price?
What type of demand is characterized by a small change in demand when there is a change in price?
Signup and view all the answers
Flashcards are hidden until you start studying
