Learn how to identify and compare elastic and inelastic products, and how they affect the market, the revenue, and the taxation.

Elasticity is an economic term that describes the responsiveness of one variable to changes in another. It commonly refers to how demand changes in response to price.

The supermarket manager learned this lesson the hard way. Examples of products whose demand is price elastic are restaurant meals, sodas, vacations, jewelry, high-priced cars and fashionable clothing.

Inelastic demand is a term used to describe the unchanging quantity of a good or service when its price changes.

The elasticity of microchips refers to how sensitive the supply or demand for these components is to changes in price.

What is elastic distortion? Elastic distortion is when an object returns to its original shape when the force is removed. An example is when you stretch a hairband, which returns to its original size ...

The long-term trend of a business' income elasticity is for expenses to shift from luxuries into necessities. As a company expands, many expenses that were initially unnecessary will become ...

Brand elasticity refers to how sensitive customer preference is for a brand when it stretches beyond its positioning or expands into new categories. Don't stretch your brand to its breaking point.