Elasticity v.s inelasticity By stephanie duhaime
ELASTICITY
Elasticity refers to the degree of responsiveness in supply or demand in relation to changes in price.
This basically means if the price of one thing gets too high they don't want that product anymore and they can just buy something else for cheaper.
Inelasticity
Inelasticity is a situation in which the supply and demand for a good or service are unaffected when the price of that good or service changes.
This basically means no matter how high the cost gets people will still buy it because they need it.
How to calculate?
Examples
Example of elastic goods are furniture, vehicles, engineering products, professional services, and transportation services. Inelastic goods don't have as many examples but the price change doesn't affect it that much because they are needs.