0.4

-0.4

2.5

-2.5

Where the curve meets the price axis

Everywhere along the curve

At the mid-point of the curve

Nowhere along the curve

There are few substitutes available

Any substitutes there are have higher prices

The product accounts for a small percentage of consumer expenditure

The product is a normal good

When an economy grows, firms would prefer to be making inferior goods rather than making normal goods

If a firm notices that the price of a substitute for its product has fallen, it would prefer the CED between the products to be far from zero rather than close to zero

If a firm notices that the price of a complement for its product has risen, it would prefer the CED between the products to be far from zero rather than close to zero

If a firm’s costs increase and it has to increase the price of its output, it would prefer demand to be price inelastic rather than price elastic

Those with a PES close to 0.0 and an IED well above 0.0

Those with a PES close to 0.0 and an IED well below 0.0

Those with a PES well above 1.0 and an IED well above 0.0

Those with a PES well above 1.0 and an IED well below 0.0