for every 1% increase in price, there is a 4% decrease in quantity demanded (elastic)
for every 1% increase in price, there is a 0.5% decrease in quantity demanded (inelastic)
for every 1% increase in price, there is a 1% decrease in quantity demanded (unit elastic)
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Goods that account for a small portion of budget=
low price elasticity
Goods that account for a large portion of budget=
for every 1% increase in income, there is a 4% increase in quantity demanded (normal good)
for every 1% increase in income, there is a 6% decrease in quantity demanded (inferior good)
for every 1% increase in income, there is a 0.5% increase in quantity demanded (necessity good)
For every 1% increase in price of product A, there is a 3% decrease in demand of product B (complements)
For every 1% increase in price of product A, there is a 7% increase in demand of product B (substitutes)
each firm has a monopoly over its own brand; product differentiation
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