Analysis of Type and Factor of Elasticity of Demand

Abstract

Some items have been shown to have relatively inelastic pricing by economists. That is, neither a decrease nor a rise in price significantly affects demand. For instance, the demand for gasoline has low price elasticity. Drivers, airlines, the trucking sector, and pretty much everyone else that buys will continue to purchase as much as they need. There are some items whose demand and supply are significantly more sensitive to variations in price. Marketers, unsurprisingly, have a lot of interest in this idea. One may argue that their goal is to ensure that consumers have no choice but to buy the goods they promote. “They do this by establishing a distinct competitive advantage for their products. Elasticity refers to the degree to which price changes result in a sizable shift in the amount requested of a good or service. What this means is that the product's demand point has been significantly pushed out. When there is just a minor shift in consumer demand in response to a shift in price, we say that the market is inelastic. Not much of an increase was seen in the amount from its original value.