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Economics

Quizzes & Activities

Elasticity of Demand and Supply - Know Your Stuff! (Quizlet Activity)

Level:
AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Check your understanding of elasticity of demand and supply with this updated quizlet revision activity!

Here are some key terms to revise!

  • Elastic supply: When PES has a coefficient >1
  • Factor making demand income elastic: Luxury / premium product e.g. designer clothing
  • Factor making demand income inelastic: Staple product seem as a necessity e.g. toothpaste
  • Factor making demand price elastic: Many close substitutes in a market and very low switching costs between competing brands
  • Factor making demand price inelastic: High cost of switching supplier & habitual purchase
  • Factor making supply price elastic: High level of unsold stocks
  • Factor making supply price inelastic: Low level of spare production capacity
  • Inelastic demand: When PED has a coefficient <1
  • Perfectly elastic demand: A market with many perfect substitutes
  • Perfectly elastic supply: When PES = infinity
  • Perfectly inelastic demand: When PED = zero
  • Unitary elasticity: When coefficient of elasticity = 1

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