Elasticity...?

Question

Can anyone explain it to me... also elastic and inelastic.... the difference... it would be greatly appreciated...Thanx in advance...

Answer 1

If a good is ELASTIC then if its price were to increase by 5%, then consumers would reduce their purchases of this good to the extent that the quantity of the good demanded would fall by MORE THAN 5%. If the price falls by 5%, the change of the quantity purchases would increase by MORE THAN 5%.
So for elastic goods the change in the quantity purchased (in terms of a percentage) is greater than the percentage change in price.

For an INELASTIC good, a 5% price increase would result in a SMALLER than 5% reduction in the quantity demanded. The quantity purchased might fall by only 2% for example. Similarly, if price decreases by 5%, there would be an increase in the quantity purchased but not by as much as 5%.

Goods with UNIT Elasticity - price goes up by 10%, quantity demanded falls by 10%. Price falls by 8%, quantity demanded increases by 8%.

Answer 2

the difference between elastic and inelastic is really pretty easy. Most everything has an elasticity range, no matter how small. You reach inelasticity when the modulous of elasticity is exceeded.

Answer 3

Elasticity is, very simply, how much you can stretch, bend, twist, or
compress something. One requirement is that the "something" has to come
back to its original shape after you've done all that. The other
requirement is that you can't break the "something;" it's no longer elastic

im not a scientist but i hope this helps xx