Quizzes & Activities
Elasticity of Demand and Supply - Know Your Stuff! (Quizlet Activity)
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 22 Dec 2018
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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