Define a relatively elastic supply. - Economics | Shaalaa.com
Define a relatively elastic supply. - Economics | Shaalaa.com
Sep 17, 2024
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An "elastic" good is one for which demand changes significantly in response to price changes, meaning consumers are very sensitive to price fluctuations. These goods are typically non-essential, luxury items, or have many close substitutes, such as airline tickets, electronics, or brand-name soda. For example, if the price of a soda brand increases, consumers are likely to switch to a competitor, causing a large drop in demand for the original brand. Characteristics of elastic goods High price s
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An "elastic" good is one for which demand changes significantly in response to price changes, meaning consumers are very sensitive to price fluctuations. These goods are typically non-essential, luxury items, or have many close substitutes, such as airline tickets, electronics, or brand-name soda. For example, if the price of a soda brand increases, consumers are likely to switch to a competitor, causing a large drop in demand for the original brand. Characteristics of elastic goods High price s
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