Calculating Elasticity and Percentage Changes
Read this article on how to estimate elasticity. Make sure to answer the "Try It" questions.
Try It
Question 1
A life sustaining medicine would most likely have a price elasticity of demand ________.
- close to zero
- above 1.0
- equal to 1.0
Question 2
Which of the following items is most likely to have price elasticity of demand above 1.0?
- airline tickers
- salt
- traditional textbooks