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Questions and Answers
What does it mean for a product to be unit elastic?
What does it mean for a product to be unit elastic?
- The quantity demanded changes proportionally to the price change. (correct)
- The price of the product increases while demand remains the same.
- The price of the product changes but total revenue stays constant.
- The product has many substitutes available in the market.
Why is Tesco's bread considered price elastic?
Why is Tesco's bread considered price elastic?
- It is a necessity for daily life.
- The demand remains constant regardless of price changes.
- It has weak substitutes in the market.
- There are many alternative bread options available. (correct)
What makes petrol an inelastic product?
What makes petrol an inelastic product?
- The demand remains constant even with price changes. (correct)
- The price increases lead to a decrease in demand.
- There are strong substitutes like public transport available.
- It is a luxury rather than a necessity.
Which product category would likely experience the least impact on sales if the price is increased significantly?
Which product category would likely experience the least impact on sales if the price is increased significantly?
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How does the concept of price elasticity relate to total revenue?
How does the concept of price elasticity relate to total revenue?
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Why can bananas be considered unit elastic?
Why can bananas be considered unit elastic?
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What impact does having many substitutes have on a product's price elasticity?
What impact does having many substitutes have on a product's price elasticity?
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How does the concept of unit elastic differ from elastic or inelastic products?
How does the concept of unit elastic differ from elastic or inelastic products?
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Why do people continue to buy petrol even when its price increases?
Why do people continue to buy petrol even when its price increases?
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What does a unit elastic product imply about the relationship between price and quantity demanded?
What does a unit elastic product imply about the relationship between price and quantity demanded?
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