The demand curve in the figure above illustrates a product whose demand has a price elasticity of demand equal to
Zero at all prices
Infinity
Once at all prices
A different amount at different prices .
Cross elasticity of demand is :
Negative for complementary goods .
Negative for substitute goods
Unitary for inferior goods
None of these
The demand curve in the figure above illustrates the demand for a product with:
Zero price elasticity of demand at all price .
Infinite price elasticity of demand
Unit price elasticity of demand at all prices
Cross elasticity
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
Demand is perfectly inelastic when:
Shift is the supply curve results in no change in price .
The good in question has perfect substitutes.
Shift of the supply curve results in no change in quantity demanded .
When a change in price results in an infinitely large response in quantity demanded ,demand is
Unit elastic
Perfectly inelastic
Perfectly elastic
Elastic
Demand will be more elastic ,
The higher the income
The lower the price
The shorter the passage of time after a permanent price increase
The more substitutes available for the good
__________ are not necessary essential .
Necessities
Luxuries
Complementary
Giffen goods
Complementary goods have :
The same elasticities of demand
Very low price elasticities of demand
Negative cross price elasticities of demand with respect to each others .
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 .
It complements but not its substitutes
