Is price elasticity of demand considered elastic or inelastic with the automotive industry?

Answer 1

I'm assuming you're asking this in terms of economics.

In which case, yes the auto industry is demand elastic. This can be seen from a few views.

Firstly, within vehicles themselves, there are many brands and models available for purchase. None of which is exacly like the other. Therefore the consumer has the ability to easily switch products for another make/model of vehicle.

Secondly, the auto industry itself as a whole has viable alternatives. If the prices of the entire auto industry were to rise, then consumers have the ability to purchase other forms of transportation, including but no limited to: public transportation, bicycles, scooters, mopeds etc.

Examples of this may be seen in some lower income countries where vehicle purchases are low relative to other forms of transportation.

Hope i answered your question in detail. sorry if some of it doesnt make sense but i typed in a hurry

Answer 2

It is considered elastic since there are many options on what type of automotive you want.