question archive What is the easiest way to remember the difference between elasticity and inelasticity?
Subject:EconomicsPrice:2.88 Bought3
What is the easiest way to remember the difference between elasticity and inelasticity?
A little change to the price of an elastic good leads to a significant variation in quantity demanded. It differs from inelastic demand because a price change has little impact on the quantity demanded. Additionally, the curve reflecting demand is much flatter when the demand is elastic while the curve reflecting demand is sloppy when demand is inelastic. Moreover, when the demand is elastic, price and revenue usually move in the opposite direction, which differs from inelastic demand because price and revenue typically move in the same direction. Substitutes goods have elastic demand, while goods with no substitutes have inelastic demand.