What's the difference between an elastic good and an inelastic good?

An elastic good is a good that has a price elasticity of demand that is greater than one. This means that the demand for the good will change significantly if the price changes. An example of such is coke-a-cola. If the price of coke-a-cola were to rise by 1 pound, most consumers would switch to pepsi, or another substitute. An inelastic good is a good that has a price elasticity of demand that is less than 1, meaning that demand for that good will not change significantly if the price is altered. An example of an inelastic good is insulin, as there are very few substitutes to insulin.

Answered by Hana K. Economics tutor

24117 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain two causes of inflation using AD/AS analysis.


Explain why the price elasticity of demand for two products may vary.


Why might a perfectly competitive firm make abnormal profit in the short run but only normal profit in the long run?


Explain the factors which might determine the natural rate of unemployment (15 Marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences