Answer to Question #164110 in Economics for Jose

Question

what is elasticity of demand

Answer 1

The price elasticity of demand for the product is a sensitivity of consumers to a price change. For some products like meat the small change in price causes a great change in the quantity purchased. Therefore, we can say that the demand for the meat is elastic. If the large change in price causes small change in the quantity purchases (bread, for example), the demand is inelastic.