Question

Sort the following statements based on whether demand is relatively elastic or relatively inelastic. There are four pairs of statements, each pair relating to a different determinant of demand elasticity.

Answer 1

The matching of the demand as relatively elastic or relatively inelastic can be done as;

• Klaus' demand for orange juice (Relatively elastic)

• Amanda's annual demand for coffee(Relatively elastic)

• Jackson's demand for mystery novels(Relatively inelastic)

• Hermy's demand for Minute Maid orange juice(Relatively inelastic)

• Olivia's daily demand for Starbucks latte(Relatively inelastic)

• Stephen spends a very little part of his income on soda(Relatively elastic)

• Xavier's demand for his economics textbook(Relatively inelastic)

What is Elasticity of demand?

Elasticity of demand  can be regarded as the variation on the concept of demand.

It should be noted that elastic demand involves change in quantity demanded as a result of  change in price.

Learn more about Elasticity of demand

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