Demand Elasticity Concepts

Any change in Price and QD changes less than the price change. People buy about the same amount no matter what- we are not very responsive to price changes

• Perfectly inelastic demand

• Relatively inelastic demand

• Relatively elastic demand

• Perfectly elastic demand

Any change in Price and QD changes more than the price change. People respond ALOT to price changes: More than the price change

• Perfectly inelastic demand

• Relatively inelastic demand

• Relatively elastic demand

• Perfectly elastic demand

Any change in Price and QD does not change at all. It stays exactly the same regardless of price

• Perfectly inelastic demand

• Relatively inelastic demand

• Relatively elastic demand

• Perfectly elastic demand

Any change in Price and QD goes to 0. There is no QD at a higher price

• Perfectly inelastic demand

• Relatively inelastic demand

• Relatively elastic demand

• Perfectly elastic demand

Epi pens, insulin are ___________

Cucumbers, avocados (anything with MANY perfect subs) are __________

• Relatively elastic, relativiely inelastic

• Relatively inelastic, Relatively elastic

• Perfectly inelastic,

  Perfectly elastic

• Perfectly elastic, Perfectly inelastic

Sodas, brands of shoes, Mcdonalds are ___________

gasoline, milk, prescription meds are __________

• Relatively elastic, relativiely inelastic

• Relatively inelastic, Relatively elastic

• Perfectly inelastic,

  Perfectly elastic

• Perfectly elastic, Perfectly inelastic

a __________ QD>QS

a _____________ QS>QD

• shortage, surplus

• surplus, shortage

a ______ occurs above equilibrium, because price was too high;

a __________ occurs below equilibrium because price was too low

• surplus, shortage

• shortage, surplus

This is a ____ and result in a ______

• Price floor, surplus

• Price floor, shortage

• Price ceiling, surplus

• Price ceiling, shortag

This is a ____ and result in a ______

• Price floor, surplus

• Price floor, shortage

• Price ceiling, surplus

• Price ceiling, shortage