Which of the following describes an elastic demand?

Which of the following describes an elastic demand? 

The elasticity of demand is the ratio of percentage change in quantity demanded to the percentage change in price. It is more than one or less than one depends upon the close substitute.

Which of the following is an example of perfectly elastic demand? 

The moment you raise your price even just a little, the quantity demanded will decrease. Examples of perfectly elastic products are luxury products such as jewels, gold, and high-end cars.

Which of the following defines elastic demand quizlet? 

Price elasticity of supply is more elastic in the long run that in the short run. When an increase or decrease in price does not change total revenue, demand is unit elastic. When demand is unit elastic, it refers to the effect on total revenue due to changes in price.

Which statement that describes price elasticity is correct? 

all are correct: The absolute value of the price elasticity is greater than 1. The percent changes in the quantity exceed the percent changes in the price for any small change in price. Suppose that an increase in the price of a good leads to an increase in total revenue.

Which of the following describes an elastic demand? – Related Questions

What has more elastic demand?

In general, the more substitutes there are for an item, the more elastic demand for it will be. The elasticity of demand for a given good or service is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

How do you find the demand elasticity of demand?

The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the percentage change in quantity demanded, q, divided by the percentage change in price, p. The formula for the demand elasticity (ǫ) is: ǫ = p q dq dp .

What is elasticity demand example?

Elastic Demand

These are items that are purchased infrequently, like a washing machine or an automobile, and can be postponed if price rises. For example, automobile rebates have been very successful in increasing automobile sales by reducing price.

What Does elasticity of demand measure?

Elasticity of Demand. • Price elasticity measures the responsiveness of the quantity demanded or supplied of a good. to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.

How do you know if demand is elastic or inelastic?

If the formula creates an absolute value greater than 1, the demand is elastic. In other words, quantity changes faster than price. If the value is less than 1, demand is inelastic. In other words, quantity changes slower than price.

Which of the following statements about the price elasticity of demand is correct?

The correct option is d. The greater the price elasticity of demand, the greater the responsiveness of quantity demanded to price.

Which of the following represents a perfectly elastic demand curve?

horizontal line
Perfectly elastic demand is represented graphically as a horizontal line. In this case, any increase in price will lead to zero units demanded. Perfectly Elastic Demand: Perfectly elastic demand is represented graphically by a horizontal line. In this case the PED value is the same at every point of the demand curve.

Which statement best explains how elasticity and incentives work together?

Which statement best explains how elasticity and incentives work together? an elastic good, such as a game, is more likely to respond to incentives.

Which is an example of a positive incentive for consumers quizlet?

Tasty Treat Tea is an elastic good because it is more of a want than a need. Which is an example of a positive incentive for consumers? The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price.

Is green tea elastic or inelastic?

Empirical results show that demand for green tea, black tea, and tea beverage are own-price elastic while coffee and coffee beverage are own-price inelastic.

What does the green arrow represent?

Viewed as a pampered playboy by the outside world, Green Arrow cares more about the plight of the poor and the suffering in America perhaps more than any other costumed superhero—a “social justice warrior” in the truest sense of the word.

What is Arrow’s real name?

Oliver Jonas Queen
His real name is Oliver Jonas Queen, a wealthy businessman and owner of Queen Consolidated who is also a well-known celebrity in Star City. He uses this position to hide the fact that he is the Arrow.

Green Arrow
Alter ego Oliver Jonas “Ollie” Queen
Place of origin Star City, California

Is the arrow a good guy?

Green Arrow has found a balance between being Green Arrow and Oliver Queen. He hasn’t lost his sense of humor or allowed the world to make him more brutal or violent, and he never pushes his people away for the sake of his mission. He’s a more well-adjusted hero than Batman.

What does P represent on the graph?

What does “P” represent on the graph? the price at the equilibrium point. The graph shows a point of equilibrium. If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach equilibrium?

Which statement best explains the law of demand quizlet?

Which statement best explains the law of demand? Answer: ✔ The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

Where is the equilibrium point on this graph?

On a graph, the point where the supply curve (S) and the demand curve (D) intersect is the equilibrium.

What shows the demand portion of equilibrium?

The market for goods and services is represented using the demand and supply curves. These curves show how the forces of demand and supply interact to determine the quantity and the price in the market.