Answer to Question #310379 in Microeconomics for smosh

Question

explain to me the determination and elasticity and inelasticity

Answer 1

Elasticity is a general measure of the responsiveness of an economic variable in response to a change in another economic variable.

By dividing the percentage change in the amount required by the percentage change in the other economic variable, the elasticity is determined.

Inelasticity is defined as a situation where a change in price does not significantly impact demand for that product.

A product is considered to be inelastic if the quantity demand of the product changes very little when its price fluctuates.