Price inelasticity of demand

Answer 1

The elasticity of demand is related to the slope of the demand curve, but is not the same. The steeper the demand curve is the more the consumers "must" have the good. Lifesaving medicine, for example, has a very steep demand curve because producers can raise the price without appreciably decreasing the quantity demanded. Goods like this are inelastic. Goods with many alternates, like potato chips, are elastic. If the price is raised, consumers will purchase alternates instead, like pretzels.

Answer 2

Elasticity of demand is the degree to which consumption of a given product will vary in response to changes in price. There are some things which we just have to have, and which therefore have a relatively inelastic demand. Other things we might enjoy having but we can do without them if necessary, hence, the demand is more elastic. If you have, for example, a medical condition which requires you to take a certain kind of drug, without which you will get very sick or die - for example, a diabetic who needs insulin - you will pay whatever that drug costs; you would never decide to do without it because it is too expensive, short of actual bankruptcy, and even then you would try to find a way of getting it, by means of some kind of assistance. But you don't have to drink champagne. You may like champagne, but if the price gets to be too high, you will stop buying it. You can always drink something else. And if prices go up excessively for all wines, you can drink soda, and if the soda gets too expensive, you can still drink water. But demand for water is relatively inelastic.

Answer 3

In economics the law of supply and demand states that, all things being equal, if the price for something increases the demand will drop. This is generally true, however in a few special cases demand reaches a point where it will not change regardless of price movement. Examples of inelastic demand include the minimum amount of inferior quality (low cost) food that is required to sustain a population.

Answer 4

Elasticity of demand is the percent change in the demand of a good over the percent change in the goods price. It is a measure of how sensitive a good's demand is to a change in its price.

If a good is inelastic, demand changes very little with a change in price (very steep demand curve)

Elastic is just the opposite, a small change in price will dramatically alter the demand (very flat demand curve).

Answer 5

The responsiveness of quantity demanded to changes in the price of a good

Answer 6

Elastic demand curve implies that the change in the price of a product has a huge impact on the buying effect. This directly affects the demand curve.

Answer 7

when price change of an item, does not affect the demand for quantity.