Elasticity of Demand Flashcard

Front

Which factor makes the demand for a product more elastic when consumers have multiple options available?

Back

Availability of many substitutes

Front

A consumer needs to purchase insulin for diabetes management. This scenario best represents:

Back

Inelastic demand due to necessity

Front

Why are luxury items typically more elastic in terms of demand?

Back

Consumers can postpone their purchase.

Front

When consumers spend a larger portion of their income on a product, the demand tends to be:

Back

More elastic

Front

The demand for a product is likely to be more elastic when: Consumers have more time to adjust to price changes

Back

Consumers have more time to adjust to price changes