The concept of elasticity is an economic concept used to measure the change in the
aggregate quantity demanded of a good or service in relation to price movements of that of
that good or service. A product is considered to be elastic if the quantity demand of the
product changes more than proportionally when its price increases or decreases. Higher
prices of supplies affect consumers because it causes consumers to buy less of the product
and this in turn affects the producers because they do not make any profit on the supplies
that they are selling. Lower priced supplies brings customers and the lower priced product
usually sells more which means the producers make a profit because they end of selling a
lot more supplies to the buyers. Prices change often of elastic goods and inelastic goods. An
example of an elastic good is feminine products, they are in high demand and are always
available and therefore prices on them go up and down depending on the need of the
product by the buyers. Elasticity is the amount of growth or retraction that a product or
service can gain due to pricing and supply changes.A lower price usually means that you
will need more product, as more people can afford it and will therefore have more
purchases of the item. if a product starts at a high price but no one wants it that generally
isn't ideal. as you lower the price and increase the supply of the item generally you will
make more profit. after you lower the price past the thresh hold into a loss of money, the
product becomes inelastic.The most used elastic goods that I purchase would have to be
winter clothes. If you purchase these items in the fall, or right before winter, the prices are
high. When they are purchased in the spring they are cheaper as people don't need them
anymore (at least for the next several months) so the demand is down, and businesses are
trying to offload the product to make room for things that will sell better based on the time
of year.All elasticities measure the sensitivity, or responsiveness, of some variable to a
change in an influence. The price elasticity of demand measures how strongly demanders
respond to a change in the price of the good or service. This is illustrated in the current
market for gasoline, as NATO responses to the Russian aggression in Ukraine, which is
part of the reason for the price of gasoline increasing at the pump. Hence is the demand for
gasoline elastic or inelastic. With economics, elasticity measures the percentage change of
one economic variable in response to a percentage change in another.
I work in retail dealing with clothes and right now we are lowering are the prices of our
summer stuff cause they are going out of season, but fall merchandise is now coming in and
this the product that people will be wanting we will be marking it up.
Supply and demand play a big role in the clothing industry and what the latest trends are to,
but with price elasticity you have the flexibility and also brings sales at regular price
without having to go down on price. We do hold Semi Annual Sales and have clearance
racks at our stores these sales are to sale the product and retain some of the profit even
though it has been marked down.
When a product that is a hot trend for people comes out, it is hard for us to get and keep in
stock the price does go up quite a bit, because the manufacturers can't keep it in stock
themselves, so they are doing what they can to provide to the stores so we can get the
product out to the customers. The concept of elasticity is the change in variables that will
cause a change in demand based on a price being lowered or raised to the consumer.
Working in retail, we use demand to advertise what will sell better during the different
seasons. The products are based on the demand of the seasons, for example Christmas,
news years, valentines to use a few examples. During the summer, hit weather merchandise
sells better and we encourage the sale of items by lower the price and putting it on sale.
This kind of price elasticity brings sales and allows for a retail business to sell through all
or most of the seasonal merchandise at a full price before being marked down on clearance.
The end of season price mark downs will guarantee the sale of more product for some
profit and the demand is greater because it is marked down.
During the high demand of COVID test and masks the business I worked for had a hard
time getting stocked and the prices went up drastically because the demand was so great
manufacturers could not keep up with demand, so the demand made the prices higher.
Elasticity is the change of demand when the price of a product changes. Therefore if the
price goes up and the demand drops it would be considered elastic. Vice if the price
changes and the demand is barley affected then it is inelastic.
When price change is higher this can cause a lower demand for the consumer causing an
oversupply or surplus for the producer. Opposite if the price drops, demand can increase
causing a shortage.
Gasoline is a good example of an inelastic product. Price continues to rise and yet everyone
still needs gas to get to work, doctor appointments, etc. Even though the demand was not
affected, it still causes the consumer to cut cost else where. For example dining out could
be one of those cost cuts. Not only has pricing gone up for smaller businesses causing a
lower demand of customers (Elasticity) . These prices have gone up not to make a profit,
but to offset the higher cost of materials/product to produce meals. This may also drive
customers from smaller diners to larger corporation dining due to prices. In
microeconomics, elasticity is a concept that measures how a change in a product's quantity
demand relates to the changes in that product or service's price. Much like an elastic band,
it describes a sort of flexibility between product or service price and the quantity of the
product. When a product or service is deemed inelastic, such flexibility does not exist and
the balance between price and demand can vary beyond the "stretch" of elasticity. With
elasticity, the price of a product can increase or decrease when quantity demand increases
or decreases. With inelasticity, price and demand tend to move in opposing directions. I too
am a hairstylist and have had to adjust my prices and availability according to the concept
of elasticity (and inflation too). I've had to begin accounting for every cash inflow and
outflow from my business even with a full-time job. Now, I've decided to start including
braiding hair in my braiding services, and with that, I have increased the price of each
service. I decided to do this when the demand for particular braiding services such as
Knotless box braids became more popular. So as the demand increased, the price went up
with the added convenience of having the hair provided. Elasticity in economics is the
measure of response that a change in the price of a product has on its supply and its
demand, it is what happens when prices go up or go down. When a price is high supply is
also high as demand decreases, fewer people are able to buy goods when they are more
expensive. When a price is lower demand increases and supply decreases, with more
consumers buying the lower-priced item and depleting the supply. One thing I can think of
that has personally affected my spending in regards to the elasticity of price is movie
tickets. My wife and I used to never go to the movies, but our local movie theater started
doing a 5$ movie day every Tuesday. The price went down, and local demand went up.
Now we go to the movies almost every Tuesday and so do a ton of other people in town. If
they were to stop doing this lower price day, I think consumers would go a lot less
frequently as most don't want to pay the full price of 14 dollars a ticket. An inelastic good,
that I need to buy regardless of the price, is gas for my car. I live in Southern California
where prices have reached 6 dollars a gallon, but demand stays the same because it is a
necessity. So in order to afford it I just have to go less places so that I am using less fuel.
Elasticity is used to determine how changes in product demand and supply relate to changes
in consumer income or the producer's price. If the price is too high, the supply will be
greater than demand, and producers will be stuck with the excess.For me personally the
purchase of hair and also hair products has increased. because of this I have had to increase
my prices for braids as well because the average I would spend in inventory for the month
would be less than $150. Since the increase on products I have had to increase the price of
my services to assure that I get what is owed to me.Price inflation on things that we need
has become more of supply on demand because regardless of price, we still need the items.
This has made it more acceptable to raise prices on things that we need because will we
need it anyways. Due to Corona, prices around the world have still not went down. Covid
has changed many things and even the way we function in our day to day lives. Elasticity is
the degree of responsiveness of a good or service to changes in its price. For example, if
you increase the price of a product by 10%, and then see a 5% decrease in demand,
elasticity would be said to be "elastic."
The concept of elasticity has been applied in pricing strategies for many years. For
example, when setting prices in an economy with relatively low elasticity (low
responsiveness), businesses are likely to keep their prices constant or increase them slowly
over time. In such an environment, small price adjustments can have a large impact on
profits. In contrast, when setting prices in an economy with relatively high elasticity (high
responsiveness), businesses are likely to make larger changes in their prices immediately as
soon as sales begin to drop off.When the price of an item increases, consumers are more
likely to buy that product, but if the price decreases, they are less likely to buy it. On the
other hand, producers will respond differently depending on whether or not they are selling
an elastic good or an inelastic good.Elastic goods are those with a natural tendency toward
being somewhat easily substituted for each other. Examples include foods such as bread or
milk, which you can substitute for each other without too much trouble; some clothing
items such as socks or jeans; and some household items like dishes and pots and pans.I
have used elastic and inelastic goods regularly in my life and they have affected me
differently. For instance, I would say that I have a more frugal lifestyle because I try to buy
things that are both durable and affordable. As a result, I try to get the best deal for my
money. However, this means that I don't often consume things at their full price point. If
something is not worth it to me, then it isn't worth buying.But there are also times when I
use an elastic good like food or an inelastic good like housing that has affected my
budgeting decisions. For example, if something has a lot of elasticity like food, then it
means that it's less expensive to eat out than cook at home. However, if something has a lot
of inelasticity like housing, then renting may be more expensive than buying a house.
