Directions: Read each main idea and complete the statements below by filling in the blanks. Refer to your textbook as you write the answers. A. Main Idea: Demand elasticity is the extent or degree to which a change in price causes a change in the quantity demanded; it may be elastic, inelastic, or unit elastic. 1. Demand is __________________ when the price change results in a relatively larger change in quantity demanded. People __________________ need products urgently with this type of demand.

2. Demand is __________________ when the price change results in a relatively smaller change in quantity demanded. People __________________ need products urgently with this type of demand.

3. Demand is __________________ when the price change results in a proportional change in quantity demanded. This type of demand is __________________ to find. B. Main Idea: When the direction of a price change is compared with the direction of the