Example of elasticity

Answer 1

[This is a requested cleanup of a flagged group of answers]

There are two uses of the term elasticity. The first is its use in physics.

Elasticity is the ability of an object to take its original shape after it has been deformed.

There are 4 mechanical deformations that can produce elasticity.

Elongation ("stretching") - a classic example is a rubber band, or a spring that pulls, or the "elastic" bands in clothing. It could also be 2-dimensional like jumping on the surface of a trampoline.

Compression ("squeezing") - a spring that pusheslike the coil springs under a vehicle, or a ball which temporarily flattens when hit by a bat or Golf club. Another example is when you pinch the skin on the back of your hand, let go, and watch the skin pull itself back into place.

Flexion ("Bending") - a diving board, leaf springs under a vehicle, a bow being used to shoot an arrow.

Torsion ("Twisting") - one type of spring used under a vehicle is the "torsion bar", so when the car hits a bump it twists a steel bar which untwists after the bump, absorbing the energy and smoothing the ride.

The second use of elasticity is in economics, where it has a number of meanings which are mostly highly technical.

In is simplest forms, market elasticity is the ratio of the percent change in one variable to the percent change in another variable. It is a tool for quantifying a specific result of taking a specific financial action.

Probably the simplest form to understand is the PED, price elasticity of demand.

[ PED = the % change in demand / the % change in price ]. In an elastic market, a small drop in price results in a large change in quantity demanded. In an inelastic market, changing the price doesn't change the demand at all, so you might as well carefully raise your price until you see some elasticity develop.

A related easy-to-understand form is the IED or YED, income elasticity of demand.

[ IED = the % change in demand / the % change in income ]. Most products tend to have a positive elasticity; as their income goes up people tend to buy (demand) more and as their income goes down they tend to buy less. "Cheap" products tend to have negative elasticity; as income goes up people tend to buy fewer "cheap" products, but if their income goes down they are likely to buy more "cheap" inferior products. A highly addictive product might have an inelastic IED; people will continue to buy it regardless of their income, and if their income goes down they'll give up something else first.

Answer 2

Inelasticity is a good or service that changes in price but they demand doesn't decrease sincce it might be a essential product for everyday basic living. it is a necessity.

examples of inelastic good or services-

• bread
• milk
• petrol
• water
• medicine for some one sick(long term) eg, high blood pressure and cancer needs continuous medication regardless of the price offered in order for the patient to survive and be healthy.

So even if the price goes higher, the demand will remain the same, because without these necessities, people may not survive.

Answer 3

A car