elasticity of demand refers to market the product or service demand when the price of the product or service is subject to change also occurred in the apparent change in the situation.
Elastic demand(Elastic-demand)
with elasticity of demand for products or services typically face market competition, incentive, alternative products are more non-production of daily necessities and other features. Such as consumer electronics-quality digital camera for the same function World Pipe network informed World Steel Pipe News , if the price of a certain level down, usually to stimulate larger sales growth, this price adjustment is initiated by an individual manufacturers, this elasticity of demand for increment will be the first price manufacturers to obtain. Therefore, the elasticity of demand characteristics of the industry often plagued by a price war. The healthy elastic demand conditions brought about by lower prices of the products or services by effectively reduce costs rather than low-price competition and stimulate demand. Corresponding to the elastic demand situation is a rigid demand.
What is the elasticity of demand