Practice with Elasticity

Price Elasticity of Demand

% change in quantity demanded/% change in price

If the demand for first-class airline tickets is inelastic with respect to price, then if the price of first-class airline tickets decreases, then total expenditure will ______________________

Decrease

Perfectly Elastic

Demand Curve is a Horizontal Line and Infinite

Perfectly Inelastic

Demand Curve is a Vertical Line and is Zero

If the demand for economy-class airline tickets is elastic with respect to price, then if the price of economy-class airline tickets decreases, then total expenditure will _________________________

Increases

Elasticity Simple Formula

Response/Stimuli

If there's an increase in the supply of bottled water (a rightward shift), then total revenue from the sale of bottled water will _____________________ if the price elasticity for the demand of bottled water is less than one

decrease if the price elasticity of demand for bottled water is less than one