Elastic Demand Vs Inelastic Demand
The demand curve for gas is inelastic.
Elastic demand vs inelastic demand. The elastic demand refers to the negative change in the quantity demanded by the customers or consumers due to the change in the price of that specific commodity. Summary elastic and inelastic are both economic concepts used to describe changes in the buyers and suppliers behavior in relation to changes in price. The more luxurious the product is the more elastic demand will be. If demand for a good or service is static even when the price changes demand.
Inelastic goods have an elasticity of less than 1. More than or equal to 1. The fewer closely related products are out there the more inelastic the demand curve will be. The more close substitutes that a product or service has the more elastic the demand curve will be.
On the other hand the inelastic demand refers to the commodity whose quantity demanded doesnt change even due to the rise in the price of that certain commodity. Elasticity of demand refers to the change in demand when there is a change in another factor such as price or income. A good or service is inelastic when the demand for it is not affected when its prices go up or down. In the case of elastic demand the demand remains very volatile and changes significantly with the change in price while in the case of inelastic the demand is very sticky and doesnt exhibit the appreciable change in response to price change.
Inelastic demand means a change in the price of a good will not have a significant effect on the quantity demanded. The primary difference between elastic and inelastic demand is that elastic demand is when a small change in the price of a good cause a greater change in the quantity demanded. Elastic demand means a significant change in quantity demanded when the small price gets changed either reduced or increased inelastic demand means small or no change in quantity demanded when the small price gets changed either reduced or increased. If the answer is greater than one then the demand or supply is elastic if the answer is less than one then it is considered to be inelastic.
Income Elasticity Of Demand Example
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