Directions: Having learned about the basics of elasticity, how will you use this to your

advantage as: (a) a consumer; (b) a future business professional/entrepreneur? Cite

specific, concrete and practical examples.

Elasticity is a measurement that describes how responsive a quantity demanded or supplied

is to one of its determinants. In consumers perspective, understanding whether a good or service
is elastic or inelastic, as well as what other products may be linked to a good's elasticity, it will
help consumers make informed decisions when deciding whether or not to buy. When a good's
demand elasticity is high, it means that consumer demand is more responsive. If goods with low
demand elasticity, on the other hand, means that consumers do not adjust their spending patterns
in response to changes in an economic variable.

Every professional will be having a good advantage when they understand the concept of
basic elasticity because when the price of their good or service reaches a point of elasticity, the
entrepreneur must quickly adjust their demand for that good or service. It's also a crucial
economic metric for businesspeople because it reflects how much of a good or service buyers
will consume when the price rises or falls. Products or services that are elastic are either
unnecessary or can be easily replaced by a substitute. At last, as a practical example, cigarette
demand is inelastic. However, because consumers have a choice, it can still be elastic due to
individual brands. Most goods have elastic demand, unless there is a pure monopoly, such as
Meralco, which is the country's only electricity supplier.

References:

Hayes, A. (2021, Auguts 1). Elasticity. Retrieved from

https://www.investopedia.com/terms/e/elasticity.asp
Kenton, W. (2021, January 2). Elasticity. Retrieved from
https://www.investopedia.com/terms/e/elastic.asp
Khan, A. (n.d.). Unit: Elasticity (Microeconomics). Retrieved from
https://www.khanacademy.org/economics-finance-domain/microeconomics/elasticity-
tutorial

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