See what we can offer to your school
"SimpleStudy just makes sense...”
Get the best plan for your school
10 cards from this deck
How responsive consumers are when price changes
As price rises, quantity demanded falls (and vice versa)
To compare responsiveness across different products/markets
Ed=% change in Qd% change in PE_d = \frac{\% \text{ change in Qd}}{\% \text{ change in P}}Ed=% change in P% change in Qd
% change in Qd > % change in price (elasticity > 1)
% change in Qd < % change in price (elasticity < 1)
Makes demand highly elastic (easy to switch)
Inelastic demand (e.g., salt)
Longer adjustment time = more elastic demand
Inelastic demand (hard to substitute)
Select your subjects, and get access to A+ resources today.