{"id":1348,"date":"2021-04-28T00:35:08","date_gmt":"2021-04-28T00:35:08","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/elastic-demand\/"},"modified":"2021-04-28T00:35:08","modified_gmt":"2021-04-28T00:35:08","slug":"elastic-demand","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/elastic-demand\/","title":{"rendered":"Elastic demand"},"content":{"rendered":"
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What is elastic demand?<\/h2>\n

Elastic demand is that price elasticity of demand where the demand varies remarkably according to the price of the product. <\/strong>In this way, a change in the value of the good will have a proportional impact on the quantity demanded.<\/p>\n

Definitely, If the price of a product rises, its demand falls, and therefore this is called elastic<\/strong>. It usually happens with those products that have substitute goods.<\/p>\n

The way in which demand adapts to the change that has occurred is also known as price elasticity, <\/strong>since a change occurs in the percentage of demand from the change that occurred in the percentage of the price.<\/p>\n

Elastic demand graph<\/h2>\n

Let's take the example of an olive oil. If he price of this product <\/strong>increases, <\/strong>for example from $ 20 to $ 50, your demand may drop<\/strong> (as we see in the graphic below) since the product can be substituted for another, such as sunflower oil, <\/strong>which is usually cheaper.<\/p>\n

\"Elastic<\/p>\n

Elastic demand graph.<\/p>\n<\/div>\n

Likewise, there is the case of perfectly elastic suit<\/strong>. Although it is difficult to find a good that meets this condition, we could put vegetables as an example: If a seller increases the price of these, it is possible that the buyer (plaintiff) will buy elsewhere<\/strong> cheaper, so the amount of demand would drop considerably<\/strong>.<\/p>\n

The perfectly elastic suit<\/strong> It is graphed as follows:<\/p>\n

\"Graph<\/p>\n

Graph of perfectly elastic demand.<\/p>\n<\/div>\n

Elastic demand and inelastic demand<\/h2>\n

The elastic demand is that demand that before a change in the price of the good, it is drastically affected, <\/strong>while the inelastic demand consists of the demand that before a change in the price of the product, it is not so affected. <\/strong><\/p>\n

Example of elastic goods<\/h2>\n

To better understand elastic demand, some examples of elastic goods are proposed below:<\/p>\n

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  • If a vegetable seller<\/strong> The price of these increases, buyers can choose to go to another place that offers the same product at a lower price, therefore the demand for vegetables in that greengrocer will be lower.<\/li>\n
  • Yes one bakery<\/strong> As the price of the breads it sells increases, the consumer will be able to buy the same merchandise in another establishment that offers a lower price, thus reducing demand.<\/li>\n<\/ul>\n<\/div>\n\n\n
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    What is elastic demand? Elastic demand is that price elasticity of demand…<\/p>\n","protected":false},"author":1,"featured_media":1349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=1348"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/1349"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=1348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=1348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=1348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}