Elasticity of Supply and Demand Introduction

What does ELASTICTY of supply and demand mean? Define.

Evaluate responses using AI:

OFF

If a product is ELASTIC then Total Revenue will be affected up or down by A LOT by a price change.

• True

• False

• What?

• I am lost right now.

If a product is INELASTIC then a price change will affect demand VERY LITTLE.

• True

• False

• What?`

• I am so lost right now.

The vertical line on this graph shows what?

• Perfect Elasticity

• Relative Elasticity

• Perfect Inelasticity

• Relative Elasticity

This graph is a representation of what?

• Relative Inelasticity

• Perfect Elasticity

• Relative Elasticity

• Relative Inelasticity

This graph is a good example of what?

• Unit Elasticity

• Relative Elasticity

• Perfect Elasticity

• Relative Inelasticity

The graph here shows what?

• Relative Inelasticity

• Perfect Elasticity

• Relative Elasticity

• Unit Elasticity

This graph shows a good representation of ...

• Relative Elasticity

• Relative Inelasticity

• Unit Elasticity

• Perfect Elasticity

Why is gasoline considered INELASTIC?

• Demand doesn't change much with price changes.

• Supply changes A LOT when people drive their cars

• Demand increases when prices drop

• Supply decreases when big trucks are on the road.

Which of the products below would be considered inelastic because regardless of price people must buy it?

• Land

• Insulin

• Fruit

• Meat