A virtual demand curve has :
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
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
None of these
PED =
Percentage change in quantity demanded / Percentage change in Price
Percentage change in demanded / Percentage change in supply
Percentage quantity demanded / Percentage change in Price
Percentage change in quantity demanded / Percentage change in supply
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 .
All the above
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 .
The price elasticity of demand depends on :
the units used to measure price and the units used to measure quantity .
the units used to measure price but not the units used to measure quantity .
The units used to measure quantity but not the units used to measure price .
Neither the units used to measure price nor the units used to measure quantity .
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 .
__________ is a measure of the reponsiveness of demand to changes in income and involves demand curve shift .
Income elasticity of demand (YED)
Cross elasticity of demand( XED)
Price elasticity of demand (PED)
Unit elasticity of demand
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
Cross elasticity of demand is :
Negative for complementary goods .
Negative for substitute goods
Unitary for inferior goods
Unitary for giffen goods
