Business 1.2: Elasticity

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What will happen if the product is inelastic?
The %change in price will lead to a smaller %change in quantity demanded.
1 of 6
True or False: A normal good is when demand for a product increases as income increases?
True
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What is the basic law of supply?
As the selling price of a product rises, supply increases.
3 of 6
The elasticity of a product is 0.5. What is it?
Necessity Good
4 of 6
The elasticity of a product is a 1.5. What is it?
Luxury Good
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The elasticity of a product is a -1.5. What is it?
Inferior Good
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Card 2

Front

True or False: A normal good is when demand for a product increases as income increases?

Back

True

Card 3

Front

What is the basic law of supply?

Back

Preview of the front of card 3

Card 4

Front

The elasticity of a product is 0.5. What is it?

Back

Preview of the front of card 4

Card 5

Front

The elasticity of a product is a 1.5. What is it?

Back

Preview of the front of card 5
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