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 ...

Elasticity is an economic term that describes the responsiveness of one variable to changes in another. ... What Is Perfectly Elastic? When a good or service is perfectly elastic, ...

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 ...

The last category is that of a perfectly elastic good, when a minute change of price results in an infinitely large change in demand. Applying the Price Elasticity of Demand.

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.