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    Question

    What is meant by elasticity of demand and inelasticity of demand?

    Price. Can anyone give me some examples to aid in the understanding?
    a few seconds ago 2 Answers

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    inelasticity demand would include water and air. Not that we necessarily "buy" it on the open market, - but we need what we need. elasticity would include DVD / movies. Dropping prices (or raising prices) by 1/3 may cause sales to increase / decrease by 100% Just a guess, if increasing gasoline prices by 10% does NOT reduce demand by the 10%, then that's IN-elastic.
    a few seconds ago

    Other Answers

    • Elastic demand: The generic groceries at the store. If price goes up a little, everyone will just switch to the generic brand at another store. (People buy less if price goes up) Inelastic demand: Oil. Everyone thinks they gotta have it, any price. (People keep buying, even when price goes way up)

      by A Guy - 33 minutes ago

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