Recalling the demand curve , which says that everything else held constant , there is a close
relationship between the market price of a good and the quantity demanded of it ; which is negative because
the consumer responds inversely to the change in price of the commodity.
A higher price , lower consumption
A lower price, higher consumption
The property is divided into different categories, depending on the sensitivity of their demand , to the
price changes .
Inelastic goods . A good is inelastic when demand hardly responds to changes in
prices. For example, goods considered necessities : milk, eggs, bread, etc. .
Elastic properties . Goods whose quantity demanded is so categorized , responds significantly to
price changes. For example, luxury goods considered : diamonds , cars , travel, etc. .
Some examples of elastic supply and inelastic supply would be:
Suppose that the quantity of a product, is completely fixed , as in the case of perishable fish that takes daily market selling price that you can achieve , in the case of inelastic unaoferta .
At the other extreme , suppose that a modest reduction in the price of the product reduces the quantity to zero and that a minimum price increase attracts an infinitely big deal, is said to be elastic unaoferta
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