Perfectly Elastic Demand. Most rational individuals won't pay for a flight with one airline if its competitors charge a lower fee to fly. Given the variety of airlines to choose from and the ...

Elastic means the product is more sensitive to price changes, such as luxury goods and non-necessary items. Inelastic means the product is less sensitive to price movements—food and gas are ...

Elasticity is an economic term that describes the responsiveness of one variable to changes in another. It commonly refers to how demand changes in response to price.

If the demand for an item changes proportionately more than the price changes, then the item is price elastic. For example, if a 1 percent price increase leads to a decrease in demand of 2 percent ...

Perfectly Elastic Demand . Most rational individuals won't pay for a flight with one airline if its competitors charge a lower fee to fly.