A normal good ALWAYS has an elastic YED.
Since inferior goods rise in demand as the income of people falls, it has a negative YED.
Luxury goods such as sports cars can be inelastic.
Price elasticity of demand can be possitive.
If the supply curve goes through the origin it is.
elastic
inelastic
unit inelastic
unit elastic
If a change in price takes place, which of the following would take the longest to respond to said change.
toy manufacturers
airlines
corn farmers without inventory
corn farmers with inventory
if a good has an income elasticity of 0.45, and the average income fell 4 percent, what was the percentage original change .
.0166
.018
-.018
-.11
Two goods substitute each other if :
xed is zero
xed is one
xed is negative
xed is possitive
If two goods are completely unrelated to each other.
xed will be zero
xed will be inelastic
xed will be elastic
xed will be undefined
If two goods satisfy the same need they are , will their xed be possitive or negative?
