Oh, I guess it is time for an economics lesson! As you know, the price of a product and the market demand are stalwart economics concepts. Elasticity is the changes in the quantity demanded of the product in response to the price movements associated with it. As a formula, elasticity is percentage change in quantity divided by percentage change in price.
For example…
Fuel, gas, petrol, diesel or whatever you call the liquid gold needed to run your vehicle are the inelastic product. This means the demand for it doesn’t go down if it’s price increased. On the other hand, if you hike up the price of your chocolate bar product, it is highly likely the demand for it will drop, making the product highly elastic.
