price elasticities of demand, is different in situations and for different products. discuss different type of elasticities of demand in different situations for different products
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The extent of responsiveness of demand with change in the price is not always the same.
The demand for a product can be elastic or inelastic, depending on the rate of change in the demand with respect to change in price of a product.
Elastic demand is the one when the response of demand is greater with a small proportionate change in the price. On the other hand, inelastic demand is the one when there is relatively a less change in the demand with a greater change in the price.
For better understanding the concepts of elastic and inelastic demand, the price elasticity of demand has been divided into five types, which are shown in Figure
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