2.3.2 - Types
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Practice Questions
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Define elastic demand.
💡 Hint: Think about products people can easily substitute.
What is inelastic demand?
💡 Hint: Consider essential goods.
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Interactive Quizzes
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What characterizes elastic demand?
💡 Hint: Think about luxury vs. necessity.
True or False: Inelastic demand is mostly associated with luxury goods.
💡 Hint: Consider basic versus luxury items.
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Challenge Problems
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Assuming the price of soda increases by 50%, and the quantity demanded falls by 80%. Is the demand for soda elastic or inelastic? Explain your reasoning.
💡 Hint: Calculate the responsiveness.
You run a bakery that sells loafs of bread. If the price increases by 10% and the quantity demanded decreases by only 2%, how would you classify the demand for bread?
💡 Hint: Think about necessities and how they respond to price changes.
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