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What is the difference between elastic demand and inelastic demand?

Whitney Matthews

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Victoria Fowler on July 14, 2020

Elastic demand is essentially when something it a luxury, hence it can be less when the price increases, for example. the last piece of choc cake that you normally purchase, you decie does not, while the inelastic demand generally refers to a product/service that is essential or a necessity, as well as the increase of consumer prices should remain the same regardless of price increase. for example, you need a loaf of bread, you are going to buy it regardless of increase. there is the process of substitution, so that the inelastic demand can be changed to a cheaper brand, so that we say that we want beans for your bread, opt for the half price 10p special in place of its usual selection of heinz best recipe. I hope this helps!

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