Tip of the Day: Elasticity
A good is considered to be Elastic when a small change in its pricing leads to a large change in the quantity bought/sold. Examples include primarily perfectly competitive markets for unessential goods. A good is Inelastic when its price can be changed wildly without having a major impact on how much is purchased. Gasoline, healthcare, and other essential goods that are typically produced by a monopoly or near-monopoly as examples of highly Inelastic goods. As is the value of most people’s own lives or the lives of our loved ones.