If Demand Changes Greatly with a Small Change in Price

question 96

Short Answer

If demand changes greatly with a small change in price, we say the demand is ________.
inelastic
variable
elastic
value-based
fixed

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Definitions:

Nominal Interest Rate

The percentage increase in money that borrowers pay lenders, not adjusted for inflation.

Fisher Effect

An economic theory stating that the real interest rate is independent of monetary measures, particularly the nominal interest rate and expected inflation rate.

Menu Costs

The costs to a company associated with changing prices, including the physical costs of changing price tags and the administrative costs of updating systems.

Inflation Rates

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, usually measured over a specific period of time.