Question

what is the difference between elasticity and inelasticity...??? how to differentiate between then?

Answer 1

Elasticity' is the measure of how much a change in the price of a good can affect it's demand

ELASTIC product has many substitutes in the market and if the price of an elastic product is increased that the demand of the product will decrease. as an example lets take Coca cola
and Pepsi. Now IF the price of Coca cola is increased people will prefer to buy PEPSI , because there is competition in the market and coca cola and Pepsi both are black drink with very less taste difference.....

*inelastic, that means that price will have very little relation to demand. If price goes, up, demand will still be the same*

Now INELASTIC is totally Opposite of Elastic product , it has no substitutes in the market.. for instance MEAT OR WATER .... If the Prices of meat and water Is increased the demand is not decreased ... because there is no other substitutes to these goods... people will not stop buying them , because it is a necessity of life .MEAT contains( fish, chicken, beef, mutton etc) so there is no other substitute to it. So it is an INELASTIC PRODUCT.

Answer 2

One can become a vegetarian

Answer 3

I think elasticity is more a theoretical than a practical concept. Consider, for example, how one can measure elasticity? How one knows what factors influenced the demand for goods? Nonetheless, the concept is useful to explain economic phenomena.

Answer 4

briefly,when you can not give up easily buying a good while price of it increases, this product is called inelastic. For example;diamond and bread, you have to consume bread to survive but you do not have to posses diamond, so when the price of bread and diamond increase, you can easily stop to buy diamond but you can not leave to buy bread.Here bread is inelastic, diamond is elastic..