Question

how does the price change effect the elasticity of a product

Answer 1

If a product is price elastic, that means its consumers respond to price changes fairly quickly. These goods are luxury items, i.e sports cars, plasma/LED TV's. In other words their spending can be prolongoued. If a product is price inelastic- its consumers will not respond to changes in its price. For example, necessities, basic bread. We needs these goods to survive, and no matter the price we will consume them.