What are some examples of elasticity 1

Elastic demand

In today's world, many consumers are careful to be frugal. Because everyday expenses alone often represent financial challenges. Many people are also financially forced to save costs. That doesn't work for all goods.

Examples of an elastic demand:

  • Luxury products such as jewelry
  • Luxury products like expensive furniture
  • to travel

Some of them are important and simply indispensable - for example, staple foods and medicines. On the other hand, there are goods that are not absolutely necessary to use. An example of this are Luxury items in the broadest sense - for example jewelry. If the price of this good rises, consumer demand drops significantly. Consumers are therefore relatively sensitive to price increases, which is referred to as elastic demand.

Elastic demand means flat demand curve

In economics, the Demand aselastic when the demanded quantity of a good changes more than the price demanded for it. For this reason, a flat demand curve arises in the graphical representation. The counterpart to elastic demand is what is known as inelastic demand. If this is the case, consumers tend to be insensitive to changes in the price level of the good in question.

An example of this is the demand for fuel. With regard to their consumption, consumers hardly have an opportunity to react to changes in the price. This fact is due to the fact that most people are also professionally dependent on their vehicle. In addition, there is no substitute product that could replace fuel.

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The article "Elastic Demand" is in the category: Elasticity