Principles of Microeconomics / Unit 4 MIC 0311 short lesson, about 20 seconds
What Makes Demand Elastic
Captions available
The idea
Demand is more elastic when close substitutes exist, when the good takes a large budget share, when it is a luxury rather than a necessity, and when buyers have time to adjust.
In practice
One brand of gasoline is elastic; gasoline as a whole is not.
Where people slip
The narrower the good's definition, the more substitutes it has and the more elastic its demand.
Your place on the trail
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