number. However, the conventional method of reporting
elasticity is to report the , which is a number.
c. Consumers respond to a price change differently over
time. Demand tends to be relatively over short
periods of time. Demand tends to be in the long run
than in the short run.
d. One of the most important determinants of elasticity of
demand is the availability of. When faced with a price
change, if consumers can easily switch to an alternative
product, then demand will tend to be relatively.
e. If demand for a product is inelastic, then an increase in
price will lead to a(n) in total expenditure. If demand
for a product is elastic, then an increase in price will lead
to a(n) in total expenditure.
3. Fill in the blanks to make the following statements correct.
a. Suppose the quantity supplied of some good is fixed in
the short run. The supply curve is vertical and the
elasticity of supply is.
b. The elasticity of supply of some good is a measure of the
of quantity supplied to a change in that good’s price.
c. Elasticity of supply is defined as the percentage change in
divided by the percentage change in.
d. If producers can easily switch production from strawberry
jam to any other kind of jam, then the elasticity of supply
of strawberry jam will be relatively.
e. The easier it is for producers to shift production toward a
product whose price has risen, the more the supply
