- elastic
- unit elastic
- inelastic
- perfectly elastic
Elastic demand
Elastic demand is when price or other factors have a big effect on the quantity consumers want to buy. You'll see it most often when consumers respond to price changes. If the price goes down just a little, they'll buy a lot more. If prices rise just a bit, they'll stop buying as much and wait for them to return to normal.
Unit elastic demand
Unit elastic demand is when the quantity demanded changes the same percent that the price does.
Inelastic demand
Inelastic demand in economics is when people buy about the same amount whether the price drops or rises. That happens with things people must have, like gasoline. Drivers must purchase the same amount even when the price increases. Likewise, they don't buy much more even if the price drops.
Perfectly elastic demand
A perfectly elastic demand is a demand where any price increase would cause the quantity demanded to fall to zero, and reducing the price of a good or service will not increase sales.