2.3.1 - Meaning
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Practice Questions
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What does elastic demand mean?
💡 Hint: Think of a rubber band.
Provide an example of a product that may have inelastic demand.
💡 Hint: Consider what you must buy regardless of price.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary focus of elasticity of demand?
💡 Hint: Think about what elasticity measures.
True or False: Elastic demand means a small change in price results in little change in quantity demanded.
💡 Hint: Recall the definition of elastic demand.
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Challenge Problems
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A new smartphone is introduced at a high price. After a month, sales are low. Evaluate whether the smartphone has elastic or inelastic demand and suggest pricing strategies.
💡 Hint: Think about typical consumer reactions to high-priced tech.
Analyze a situation where the government enforces a tax on cigarettes, which are often considered inelastic. What impact would this have on demand?
💡 Hint: Consider listeners' addictions and habits.
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