Short Answer
Figure 1.2
Using the figure above, identify the labeled part.
-Label L: ______________________________
Definitions:
Demand
The willingness and ability of consumers to purchase goods or services at various price levels.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a responsive market.
Inelastic
Describing a situation where a change in the price of a good or service has a relatively small effect on the quantity demanded or supplied.
Price Elasticity
The responsiveness of the quantity demanded or supplied of a good to a change in its price, commonly referred to in economics as price elasticity of demand or supply.
Related Questions