Ch.4 Sec.3 Assessment

Elastic demand formula

1) $4-$3/$4 x 100=25 2) 10-20/10 x 100=100 3) 100%/25%=4.0 If demand is greater than 1, the demand is elastic

Inelastic demand formula

1) $6-$2/$6 x 100=67 2) 10-15/10 x 100=50 3) 50%/67%= 0.75 If demand is less than 1,the demand in inelastic

Why is demand for home heating fuel inelastic in cold wether

Because everyone wants to stay warm in the winter, and are willing to pay any price to keep warm

Explain elasticity of demand in your own words

Elasticity of demand is how consumers react to the change in an items price and what the measure is

How do we calculate total revenue?

Total revenue is calculated by multiplying the quantity of goods sold by the price of the goods

Name a good with elastic demand at it current price

gas, fruit and vegetables, and cereal