Loading the lesson
Loading the lesson
Search AllRounder.ai
Search the courses, subjects, tracks, games and features, or jump straight to a page.
Search the courses, subjects, tracks, games and features, or jump straight to a page.
3 cards from this section. Quick, good the night before a test.
Define price elasticity of demand.
Think about how demand reacts when prices shift.
What is inelastic demand?
Remember, inelastic means less responsive.
What is the impact on expenditure when demand is inelastic and price increases?
Think about household essentials.
True or False: Elastic demand means total expenditure remains constant with price changes.
Recall the relationship with elasticity.
Suppose a product costs $10 and sells 100 units. If the price increases by 20% and quantity demanded decreases to 80, calculate the new total expenditure.
Remember to multiply the new price by the new quantity.
If a good’s price decreases by 30% while demand increases by 50%, will the expenditure increase or decrease? Show your calculations.
Check percentage changes before calculating.
4 more questions in this section. Enroll free to practise them all.
Enroll free