What is the definition of Elastic products?

Answer 1

By "elastic products" I am assuming you mean that the demand for these products is relatively elastic. This means that if the price of the product were to decrease, there would be a relatively large increase in the quantities demanded and if the price were to increase, there would be a relatively large decrease in quantities demanded. Products that tend to be elastic are products that have a large number number of substitutes, products that tend to be luxuries (people can do without them), and products that take up a relatively large portion of houshold income (like washing machines, refidgerators, etc.). The demand curves for these products tend to be relatively flat. That is a general definition of products that are "relatively elastic". Things that are "relatively inelastic" are ones that can change their prices, but people will still tend to buy the same amount of the product. These tend to be things that are not luxuries, but needs or addictions (like essential medicines or addictive substances) or things that don't take up much of a person's income (like pencils or salt). The demand curve for these products tend to be relatively steep. These are general ideas. To confuse things, however, most products have a price range where the demand is elastic and a price range where the demand is inelastic. The mathematical formula has you find the percentage change in price compared to the percentage change in quantity demanded. If the % change in price is greater than the % change in quantity demanded, then the demand for the product is inelastic in that price range. If the % change in price is less than the % change in quantity demanded, then the demand for the product is elastic in that price range.