20. In what condition below shows that demand is elasticDemand curve has a steep slopeThe case of necessity goodsO The case of luxury goodsIn a short period of time21. What kinds of good tend to have highly inelasticity of demandOfuel (i.e., oil/gas)agricultural products in world marketLuis viton brand name handbagalternative power energy 18. The price elasticity of demand (or of supply) is elasticity when:elasticity is less than 1elasticity is more than 1elasticity is perfectly inelasticelasticity is equal to 119. What can determine elasticity of demand?availability of close substitute productstime horizonnecessity goods or luxury goodsall are correct

Answered: 20. In what condition below shows that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:20. In what condition below shows that demand is elastic Demand curve has a steep slope The case of necessity goods O The case of luxury goods In a short period of time 21. What kinds of good tend to have highly inelasticity of demand Ofuel (i.e., oil/gas) agricultural products in world market Luis viton brand name handbag alternative power energy

18. The price elasticity of demand (or of supply) is elasticity when:
elasticity is less than 1
elasticity is more than 1
elasticity is perfectly inelastic
elasticity is equal to 1
19. What can determine elasticity of demand?
availability of close substitute products
time horizon
necessity goods or luxury goods
all are correct

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By calculating the ratio of the change in the quantity demanded to the change in the price, elasticity is defined as the ratio of two percentages. A demand that is elastic experiences a significant change in quantity demanded as a result of a price change. When the amount demanded changes little as a result of a price change, the demand is said to be inelastic. Elasticity is a term used in economics to describe how a good or service's total quantity demanded changes in response to changes in its price.

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