Demand Elasticity

Water has seen an increase in demand 8% this summer, while the price has decreased 12%

• 1.5 inelastic

• 1.5 elastic

• .67 inelastic

• .67 elastic

Wheat has seen a decrease in demand of 5%, while the price has increased 7%

• 1.4 inelastic

• 1.4 elastic

• .71 inelastic

• .71 elastic

Oil has seen a decrease in demand of 9%, while the price has increased 13%

• 1.44 inelastic

• 1.44 elastic

• .69 inelastic

• .69 elastic

Ford Trucks have seen a increase in demand of 27%, while the price has decreased 15%

• .56 inelastic

• .56 elastic

• 1.8 inelastic

• 1.8 elastic

Prada has seen a increase in demand of 70%, while the price has decreased 35%

• .5 inelastic

• .5 elastic

• 2 inelastic

• 2 elastic

What measures demand elasticity?

• Inverse Demand Theory
• Total Revenue Test
• Equilibrium Price Test
• Demand Coefficient Formula

This curve shows

• Elastic Demand
• Inelastic Demand

This curve shows

• Elastic Demand
• Inelastic Demand

If substitutes ARE readily available for a good or service it has

• elastic demand
• inelastic demand

If substitutes are not readily available for a good or service its has

• inelastic demand
• elastic demand