This course will explore the concept of elasticity and inelasticity of demand. It will cover the different types of elasticity and inelasticity of demand, the factors that influence elasticity and inelasticity of demand, and how to measure elasticity and inelastic
A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when there is a one percent increase in price, holding everything else constant. If the elasticity is −2, that means a one percent price rise leads to a two percent decline in quantity demanded. Other elasticities measure how the quantity demanded changes with other variables.