Elasticity of Demand

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.

• elastic

• unitary elastic

• inelastic

• hyperelastic

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.

Which of the following two goods is more likely to be inelastically demanded?

• Demand for tangerines

• Demand for fruit

Which of the following two goods is more likely to be inelastically demanded?

• Demand for insulin

• Demand for vitamins

Products that tend to be used together 

• complements 
• substitutes
• goods
• needs 

The desire, ability and willingness to buy a product 

• Demand 
• Supply 
• Consume 

When replacing a certain item with with a less costly item is an example of

• the substitution effect 
• the income effect 
• demand elasticity 
• complements 

Which of these best describes the law of demand?

• if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up

• if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down

• there is no law of demand, each situation is unique and demand and prices cannot be predicted

• prices will go up for certain goods when quantity demanded goes up and vice versa

This curve shows

• Elastic Demand
• Inelastic Demand

This curve shows

• Elastic Demand
• Inelastic Demand