When the price elasticity of demand is between 0 and 1 it is
inelastic
elastic
unit elastic
Price elasticity of demand has an inverse relationship
If the elasticity is unit elastic, and the quantity demanded increases by 20%, then the price must increase by 20%
The equation for finding a percentage change is
old-new/new
(new-old/old) *100
new-old/old
bread and cream cheese have an xed of -0.7. They are
weak or no subsitutes
strong subsitutes
weak or no complements
strong complements
The reasons for why ped changes are
stock
time
capacities
substituion of capital labor
choice
The unit elastic graph of ped starts at the origin
If a scarf has an elasticity of 1.6, it is a
Normal necessity good
Normal inferior good
Normal luxury good
Inferior good
If a good is inelastic, it's not responsive to price
In a xed graph, two goods with no relationship would look like a horizontal line
