Definition(elasticity): the measure of how a goods demand fluctuates with price change.
Types-
Inelastic -
Under 1- goods that can be substituted (ex: type of jeans)
Elastic -
Over - goods that can not be substituted (ex: gas)
Unitary -
When it is equal to 1 (ex. diabetic insulin)
Types-
Inelastic -
Under 1- goods that can be substituted (ex: type of jeans)
Elastic -
Over - goods that can not be substituted (ex: gas)
Unitary -
When it is equal to 1 (ex. diabetic insulin)