When cross elasticity of demand is minus infinity, then two goods are
Substitutes
Complements
Not related
Perfect complements
If goods are complements, definitely their
Cross elasticities are positive
Cross elasticities are negative
Income elasticities are negative
Price elasticities are negative
Price elasticity of demand =
Ed =
Unit elastic demand
Means that the ratio of change in the quantity demanded to a change in the price equals 1
Means that the ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1
will be vertical
will be horizontal
When a change in price results in an infinitely large response in quantity demanded, demand is
Unit elastic
Perfectly inelastic
Perfectly elastic
Elastic
Price demand
The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of
Its substitute and its complements
Its substitute but not its complements
Its complements but not its substitutes
Its complements but not its giffen goods
Demand is perfectly inelastic when
Shift is the supply curve results is no change in price
The good in question has perfect substitutes
Shift of the supply curve results in no change in quantity demanded
Shift is the supply curve results is change in price
