Ang Paghihintay

Elasticity- The measure of sensitivity of quantity supplied to changes in price.

Demand Elasticity- The measure of responsiveness of the consumers to the changes in price.

Classification of Demand Elasticity

1.Elastic Demand- when the quantity demanded is greatly affected by the changes in price.

2.Inelastic Demand- the quantity demanded increase in price creates a lesser change in the percentage in quantity demanded.

3.Unitary Demand- when there is an equal change in quantity demanded and the price.

4.Perfectly Elastic Demand- the demand continues to increase without the change in price.

5.Perfectly Inelastic Demand- when there is a constant demand while the price is continuously increasing.

Table Ellustration of Classification of Demand Elasticity

P P

Q elastic demand inelastic demand

P

unirtary demand perfectly elastic demand

perfectly inelastic demand

Determinants of Demand Elasticity

1.The price of the consumers budget.

The quantity demanded depends on the budget or the income of the consumer. it is usually on the elastic type of demand. One example of this is the things that are not necessary in our lives like cars,appliances. When their price increase, the consumers can easily take away from their list those unecessary things.

2.Availability of the substitutes.

It is when the price of the primary goods gets higher, the closer the consumer will transfer to the substitutes. But, it is considered as an inelastic demand.

3.Types of Good.

It depends on the type of good that the consumers intended to buy, it is what we called the semi-necessary goods for the consumers.

4.The time under consideration.

When the price of the product continously increasing, the consumers will learn to adopt the