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Elastica ina economicsa isa toa describea aa changea ina thea behavioura ofa buyersa anda sellersa ina
responsea toa aa changea ina pricea fora aa gooda ora service.a Ifa pricesa fora itemsa area tooa high,a ita willa
causea supplya toa bea greatera thana thea demanda thea producersa willa bea unablea toa movea thea
productsa causinga thema toa bea stucka witha unsellablea goods.a Ifa thea pricea goesa downa thea
demanda willa increasea leavinga lessa supply.a Ia ama aa bargaina shopper.a Ia lovea aa gooda discount,a soa
Ia waita fora pricesa toa goa downa anda Ia purchasea thingsa Ia wanta then.a Ia doa nota purchasea goodsa ifa Ia
feela theya area overpriced.a Ifa ita isa nota aa life-or-deatha item.a Ia cana doa withouta it.a Elasticitya ina
Economicsa refersa toa thea reactivitya ofa supplya anda demanda toa pricea ora onea ofa itsa determinants.a
Whata thisa meansa is,a ifa therea isa aa changea ina price,a therea cana anda willa bea aa changea ina demand.a
Fora example,a ifa Applea werea toa increasea thea pricea ofa ana iphonea (Whicha theya usuallya do)a
woulda thea demanda change?a Wella ina thisa case,a usuallya peoplea willa stilla paya fora thea iphonea ifa
theya area fans,a buta therea ora folksa likea mea whoa willa thena searcha fora aa cheapera phonea asa ana
alternativea anda thereforea thea demanda ina generala willa goa down.a Thisa leavesa somea unsolda
merchandise,a anda thereforea thea supplya isa highera thana demand.a Ana inelastica good,a differenta
froma somethinga populara likea thea iphone,a woulda bea somethinga likea mya prescriptiona drugsa ia
needa fora mya family.a Thea pricea isa whata ita is,a anda thea demanda anda supplya staya thea same,a asa it'sa
aa medicationa requireda toa livea anda function.a Toa puta simply,a ana inelastica gooda isa rigida anda nona
changing,a whilea anda elastica gooda isa ablea toa changea demanda anda supplya baseda ona thea price.a
Thea concepta ofa elasticitya cana bea defineda asa thea flexibilitya ofa changea ina thea pricea fora thea
buyersa anda sellers.a Aa highera anda aa lowera pricea affecta consumersa anda producersa aa lot.a Ifa thea
producersa increasea thea pricea ofa theira items,a thena thea demanda woulda goa downa anda thea
consumersa woulda finda aa cheapera alternative,a whicha leavesa thea supplya tooa high.a Ifa thea
producersa decreasea thea pricea ofa theira items,a thena thea demanda woulda bea higher,a buta thea
supplya woulda bea lower,a asa thea producersa woulda nota bea makinga asa manya profits.
Ana elastica gooda Ia havea isa buyinga Victoria’sa Secreta clothing.a Ia likea thea qualitya ofa theira
clothes,a buta Ia refusea toa paya fulla price.a Ia buya mosta thingsa thata area ona sale,a becausea Ia cannota
justifya payinga $80a fora aa paira ofa leggings.a Ana inelastica gooda thata Ia buya woulda bea gas.a Ia
cannota substitutea gasa fora somethinga else,a (wella besidesa gettinga ana electrica car)a soa Ia havea toa
spenda thea moneya ona thea gas.a Noa mattera howa mucha thea gasa pricesa increase,a Ia havea toa geta ita
regardless.
Thea terma ora concepta ofa elasticitya isa thea flexibilitya thata thea producta ora servicea hasa toa changesa
ina pricea fora thea consumer.a Aa consumera willa havea certaina needsa thata cana bea meta bya necessarya
(ora inelastic)a productsa fora theira household.a Ifa ana itema isa importanta enougha fora everydaya lifea
sucha asa fooda staples,a clothing,a gasa ora electrica fora utilitiesa thana thea consumera willa morea thana
likelya paya toa havea ita available.a Ana inelastica gooda isa somethinga thata evena thougha thea
consumera maya wanta ita theya maya bea ablea toa survivea withouta ita anda woulda bea considereda morea
luxurya goods.a Somea examplesa ofa inelastica goodsa area vacations,a theatera tickets,a designera
labela clothes,a anda jewelry.a Theya area nicea toa havea buta ifa thea budgeta doesa nota allowa thena ita cana
bea removeda toa fulfilla thea basica humana needsa fora food,a sheltera anda clothing.a Ana itema thata
comesa toa minda fora mya familya area tripsa toa thea city.a Wea livea abouta 20a milesa froma Sana Antonioa
anda beforea gasa pricesa wenta up,a Ia woulda takea aa drivea justa toa picka upa somethinga fora dinnera ora
fulfilla aa cravinga fora Starbucks.a Sincea gasa pricesa area soa high,a Ia havea cuta downa toa onea tripa aa
weeka toa thea citya asa opposeda toa mya 3a tripsa weekly.a Elasticitya isa aa economica terma whicha
describesa thea changea ina behaviora ofa buyersa anda sellersa ina responsea toa aa pricea changea fora aa
gooda ora service.a Whena thea pricea ofa goodsa ora productsa goesa upa consumersa demanda lessa ofa ita
anda thena morea supplya entersa intoa thea market.a Ifa thea pricea goesa upa tooa higha thea supplya willa
becomea greatera thana demanda anda producersa willa bea stucka witha thea excess.a Lowa pricesa area
signsa fora producersa toa producea lessa anda fora buyersa toa buya more.a Aa producta isa considereda toa
bea inelastica ifa thea quantitya demanda ofa thea producta changesa verya littlea whena thea pricea
fluctuates.a Pricea elasticitya ofa demanda cana affecta aa business'sa abilitya toa increasea thea pricea ofa aa
product.a Ifa thea pricea fora ana inelastica gooda isa lowereda thena thea demanda fora thata gooda doesa nota
increasea resultinga ina lessa overalla revenuea duea toa thea lowera price.a Elastica goodsa includea
luxurya itemsa anda thea inelastica productsa area usuallya utilities,a prescriptiona drugs,a anda Tabaco.a
Anothera worda ofa inelastica isa stablea anda rigida toa namea aa few.a Ia definea thea concepta ofa
elasticitya asa aa pricea increasea ora decreasea anda howa thea changea ina pricea effectsa thea amounta
thata isa purchaseda bya consumersa anda howa aa changea ina pricea thena impactsa howa mucha ofa
somethinga isa supplieda toa consumers.
Aa highera pricea tendsa toa lowera thea quantitya thata isa purchaseda bya consumersa whilea producersa
ofa aa gooda ora servicea rampa upa production.a Aa lowera pricea ofa aa gooda ora servicea isa appealinga toa
consumersa anda thea lowera pricea typicallya sellsa morea unitsa causinga thea producersa ofa aa gooda toa
lowera production.Aa luxury,a ora elastica good,a Ia consumea isa soda.a Ia doa nota needa ita buta whena ita
isa nota ona salea (costsa more)a Ia substitutea aa branda Ia likea fora branda Ia likea lessa thata costsa lessa thana
aa branda Ia enjoy.a Fora example,a thea salea pricea fora 3a casesa ofa sodaa Ia doa nota enjoya asa mucha isa
$9.a Thea sodaa Ia enjoya isa nota ona salea anda costsa $6.49a fora onea case.a Ia wanta sodaa anda willa
purchasea it,a buta Ia ama willinga toa purchasea aa branda Ia enjoya lessa becausea thea costa isa
less.Somethinga thata fallsa intoa thea inelastica category,a aa necessity,a isa gasoline.a Despitea thea
constanta fluctuatinga pricesa ofa gasoline,a Ia stilla needa toa purchasea gasolinea toa goa toa worka anda
appointments.a Ia ama smartera abouta mya drivinga whena ita comesa toa determininga whata Ia musta doa
anda whata Ia wanta toa do.a Elasticitya isa aa terma thata measuresa thea percentagea changea ofa onea
variablea ina responsea toa thea percentagea changea ofa anothera variable.a Pricesa affecta botha thea
consumera anda producera whena theya goa upa higha anda whena theya dropa low.a Whenevera pricesa
dropa low,a thea consumera demandsa morea ofa thea good,a whicha cana bringa ina morea incomea fora thea
producer,a buta ita coulda alsoa causea aa shortage.a Ona thea othera hand,a ifa aa pricea goesa upa high,a thea
consumera willa nota demanda asa mucha ofa thea good,a thereforea thea producera willa havea morea ona
theira handsa thana theya needa causinga thea producera toa bea stucka witha thea excessa amount.a Ana
examplea froma mya personala lifea isa aa fairlya simplea explanation.a Ia reallya enjoya steak.a
Whenevera thea pricea ofa steaka wasa lowera ina aa grocerya store,a Ia woulda buya morea ofa ita fora oura
familya toa eat.a Whenevera thea pricea shota upa ata oura locala grocerya store,a wea opteda fora anothera
meala becausea thea pricea wasa aa crazya amounta toa paya justa fora steak.a Whena thea pricea wenta backa
down,a wea decideda toa goa backa toa buyinga morea ofa it.a therea area twoa waysa toa looka ata elasticitya
ofa demand.a Ita cana bea vieweda froma thea aspecta ofa thea slopea ofa thea demanda curve.a Thea closera ita
isa toa thea horizontal,a thea morea elastica isa thea demand.a Thea morea thea curvea isa towarda thea
verticala thea morea inelastica thea demand.a Ifa ita isa completelya horizontala thea demanda isa perfectlya
elastic.a Ifa ita isa completelya vertical,a ita isa perfectlya inelastic.a Ita cana alsoa bea vieweda froma pointsa
alonga thea demanda curve.a Asa wea movea downa aa straight-linea demanda curve,a demanda movesa
froma elastica toa inelastic.a Elasticitya givesa usa aa waya toa measurea howa mucha peoplea responda toa
pricea changes.a Thea pricea elasticitya ofa demanda isa thea percentagea changea ina quantitya
demandeda ofa aa gooda divideda bya thea percentagea changea ina thea pricea ofa thata good.a Althougha
thea quantitya demandeda changesa ina thea oppositea directiona froma thea changea ina price,a wea
usuallya talka abouta thea pricea elasticitya ofa demanda asa aa positivea number.
Thea possiblea valuesa ofa thea pricea elasticitya ofa demanda area divideda intoa ranges:
Wea saya thata demanda isa elastica ifa thea pricea elasticitya ofa demanda isa morea thana one.
Wea saya thata demanda isa inelastica ifa thea pricea elasticitya ofa demanda isa lessa thana one.
Wea saya thata demanda isa unita elastica ifa thea pricea elasticitya ofa demanda isa equala toa one.
Ifa aa gooda ora servicea isa inelastic,a consumersa area lessa sensitivea toa aa changea ina price.a Aa
perfectlya inelastica gooda isa aa gooda thata hasa noa changea ina pricea ora quantitya demanda .Ifa
somethinga werea toa bea perfectlya inelastic,a consumersa woulda havea thea comforta ofa knowinga
thata thisa onea itema willa nevera changea ina pricea anda alwaysa bea available.a Somethinga beinga
perfectlya inelastica asa aa buyera anda sellera woulda providea aa company’sa employeesa joba stabilitya
anda aa reliablea income.a Somethinga beinga perfectlya inelastica woulda bea greata fora aa businessa
becausea therea wouldn’ta bea predictability,a therea woulda bea certainty.a Therea woulda bea noa
planning,a noa reala needa fora budgetinga ora reactivea actionsa fora aa supplya beinga shorta ona quantitya
ora fluctuationa ofa price.Thea onlya examplea Ia cana comea upa witha thata isa closea toa beinga perfectlya
inelastica isa thea pricea ofa aa hota doga anda fountaina sodaa ata Costco.a Thisa comboa hasa beena $1.50a
sincea thea 80’sa anda theya doa nota plana toa raisea thea price,a despitea currenta inflationa .Ia lovea Cokea
Zeroa buta duea toa thea highera pricesa closea toa $8a ina mya areaa fora aa casea ofa 12,a Ia havea beena
substitutinga fora thea storea brandeda Cocaa Colaa Zero.a Ita stilla satisfiesa me,a anda Ia havea learneda toa
likea it.a Whena alla ofa thea shortagesa werea happeninga aa couplea ofa yearsa ago,a wea alsoa switcheda
othera nationala brandsa fora fooda itemsa toa storea brandeda itemsa anda wea havea stilla kepta thema ona
oura shelvesa sincea ultimatelya ita isa savinga usa money.a Unfortunately,a thea pricea ofa gasa isa asa youa
stateda constantlya changinga anda stilla necessary.a Wea cana onlya makea bettera choicesa decidinga
wherea anda howa mucha wea usea oura vehiclesa toa helpa countera thea risinga pricesa ofa gasoline,a
whicha isa ana inelastica product.Ina mya opinion,a thea terma elasticitya prettya mucha describesa itselfa
fora thea mosta part.a Ia feela likea thea terma somewhata tellsa thea definitiona fora itself.a Wea seea
elasticitya daily,a buta sometimes,a myselfa included,a wea overlooka ita nota reallya payinga attentiona
unlessa thea pricesa geta extremelya high,a ora extremelya low.a Pricesa ona itemsa ina today'sa economya
seema toa fluctuatea daily.a Likea gasa pricesa fora instance.a Theya gavea bea skya higha onea day,a thena
lowera thea next.a Elasticitya isa defineda asa thea percentagea changea ina quantitya divideda bya thea
percentagea changea ina price.a Essentiallya thisa concepta measuresa howa consumersa reacta (ina
termsa ofa demanda fora aa product)a whena producersa changea thea price.a Thisa cana worka outa ina aa
fewa differenta ways.a Ifa wea usea gasolinea asa ana example,a ifa thea pricea ofa gasolinea nationwidea
increasesa bya tena cents,a thea demanda maya staya mostlya thea samea becausea obtaininga aa modea ofa
transportationa thata doesn'ta usea gasolinea woulda bea fara morea inconvenienta anda expensivea fora
thea normala consumer.a However,a ifa gasa stationa Aa costsa tena centsa morea pera gallona thana gasa
stationa Ba downa thea street,a gasa stationa Aa cana expecta diminishinga returns.a Consumersa
ultimatelya area focuseda ona findinga thea besta deala fora theira money,a whicha isa whya youa seea
companiesa likea Walmarta doinga soa well.Gasolinea isa ana inelastica gooda thata Ia usea regularlya thata
Ia stilla purchasea regardlessa ofa price.a Asa wea alla know,a thea pricea ofa gasolinea isa ata ana all-timea
high,a buta asa Ia stateda above,a wea don'ta havea aa choicea buta toa usea it.a Ana elastica producta thata Ia
havea purchaseda lessa ofa duea toa highera pricesa area shoes.a Ia collecta shoesa anda overa thea lasta fewa
years,a thea pricesa havea increaseda significantly.a Ia havea beena cuttinga backa ona collectinga
becausea ofa thea highera prices.First,a ifa thea pricea ofa ana elastica gooda goesa up,a Ia willa bea lessa
likelya toa buya ita thana ifa thea pricea ofa ana inelastica gooda goesa up.a Ifa aa producta thata isa nota
necessarya toa survivea isa noa longera asa expensivea asa onea thata isa necessarya toa survive,a thena Ia
willa nota purchasea thea formera anda spenda mya moneya ona thea latter.a Thisa meansa thata mya
spendinga patternsa willa nota change,a evena ifa Ia knowa thata thea pricea ofa thea formera hasa gonea
downa relativea toa thea latter.Second,a whena pricesa change,a ita affectsa howa mucha moneya Ia cana
afforda toa spenda ona othera things.a Ifa therea area fewera resourcesa availablea fora consumptiona duea
toa fewera salesa (whicha impliesa lowera demand),a thena ita willa bea morea difficulta fora mea toa havea
enougha moneya lefta overa aftera payinga fora fooda anda sheltera thana beforea (whicha impliesa highera
demand).a Applea chargesa fora theira phonea justa becausea ita seemsa likea thea phonea toa have.a Witha
theira ever-changinga linea upa ofa colorsa anda softwarea changesa theya makea ita seema likea oura lifea
woulda bea incompletea withouta thea newesta Applea product.a Ia useda toa usea aa Blackberry,a thena aa
Samsunga Galaxya anda evena thougha thea technologya wasa comparablea ita dida nota havea thea samea
cachea asa thea iPhone.a Ina mya viewa Ia cana seea thata ita woulda bea ana elastica wanta fora somea anda ana
inelastica needa fora othersa duea toa alla ofa itsa functions.a Ana elastica wanta isa somethinga wea wanta
buta isa nota essentiala fora survivala whilea ana inelastica needa isa morea ofa somethinga wea needa toa
survive.
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