elastic vs. inelastic?
can someone explain the difference with some examples. i am learning about it in economics and am trying to completely grasp it at all levels.
- Anonymous1 decade agoFavorite Answer
Elastic demand is a type of demand that will rise or fall depending on the price of the good. For example, candy bars are an elastic demand. If the price of candy is around $1, most people will buy the candy and it will be high in demand. However, if that same candy bar's price rose up to $4, most people would not buy the candy.
Inelastic demand is the opposite. People will buy goods with an inelastic demand no matter what the price is. A good example of this would be gas. People complain and complain about gas prices, yet they still buy it because they need it, even if it $3 a gallon. Another example would be life-saving medications. Even if they are expensive, people will still buy them or else they could possibly die.
So basically the elastic demand for a good will rise or fall depening on the price where as an inelastic demand for a good won't.
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- Anonymous1 decade ago
It explains the relationship of demand to a change in price. Things are are price inealistic have less of a change in demand in response to a change in price. A good example would be gas, people don't generally change their demand as prices go up. Items with generally more elasticity of demand would likely be discretionary consumer items, like a vacation, etc. It's been 20 years since my last economics class where I covered things in such minute detail so I will gladly defer to others.
- Anonymous1 decade ago
elastic means there is much and frequent change i.e the housing market and real estate
inelastic means that it will pretty much stay the same with very little changes like the US currency
This may not be 100% accurate as i have been out of hs for some time but thats pretty much how i recall it
- 6 years ago
Basically, goods said to be price elastic are goods that a change in price will bring about a big change in demand. For example, If the price of mcvities chocolate digestives increase from $1.20 to $2.20 the demand for that good will decrease because there are substitutes for that particular biscuit such as tesco value chocolate digestives or other biscuits.
While goods said to be price inelastic are goods that a change in price will barely or not even bring about any change in demand. The best example is fuel, because no matter the change in price and no matter how much people complain, they will still buy it as it is an essential good and they need it.
- shaunLv 45 years ago
A situation in which the supply and demand for a good or service can vary significantly due to the price. The elasticity of a good or service can vary according to the amount of close substitutes, its relative cost and the amount of time that has elapsed since the price change occurred.
An economic term used to describe the situation in which the supply and demand for a good or service are unaffected when the price of that good or service changes.
- 5 years ago
- 3 years ago
A summary of Elasticity in 's Elasticity. Learn exactly what happened in this chapter, scene, or section of Elasticity and what it means. Perfect for acing essays, .................