What is the definition of elastic and inelastic demand and why are product X and Y elastic whilst product Z inelastic?
Regards,
Lucienne
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June 2014 Q1c.
Have you read our free Lecture Notes and watched our free lectures (because the terms are explained there).
If demand is elastic then the demand will change as the selling price changes. If demand is inelastic then the demand will not be affected much by changes in the selling price.
We know about X, Y and Z because the first line of the question says X & Y are elastic and Z is inelastic.
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