Elasticity of Demand and Supply

Front

How we as consumers react to a change in price is called elasticity of demand.

Back

True

Front

Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.

Back

inelastic

Front

Describe your demand for a product if you skip buying it or buy a substitute after a large price increase.

Back

elastic

Front

How does elasticity affect potential revenue (profit) for a firm?

Back

If demand for a good is elastic, raising the price could reduce revenue.

Front

Which of the following is an example of inelastic demand? Jason wants the most expensive cellphone. He decides to get a cheaper model., Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener., Tianna wants to try out a new, expensive restaurant. She goes to another restaurant whose food is excellent and costs less., Shawn wants to buy a house in one neighborhood. But after searching, he decides to buy a house elsewhere instead.

Back

Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener.

Front

Which of the following two goods is more likely to be elastically demanded?
Demand for ice cream,
Demand for fruit

Back

Demand for ice cream

Front

Which of the following two goods is more likely to be inelastically demanded? Demand for insulin, Demand for air conditioning

Back

Demand for insulin

Front

After employers allow their employees to telework from home, will the demand for cars be more elastic or more inelastic due to the change?

Back

More elastic

Front

After the invention of nuclear power plants, will the demand for coal power plants be more elastic or more inelastic?

Back

More elastic

Front

Elasticity of supply measures the way suppliers react to a change in price.

Back

True