PLACIENTE, KASSEL L.

BSHM 202H

MIDTERM PROJECT

Reflection on Week 7

Elastic demand means there is a substantial change in quantity

demanded when another economic factor changes (typically the price of the
good or service), whereas inelastic demand means that there is only a slight (or
no change) in quantity demanded of the good or service when another
economic factor is changed. Elastic demand is a quantity that is sensitive to a
change in price when the price goes up then the quantity demand goes down a
lot more and the price goes down, the quantity demand increases a lot more.
So, it’s always the opposite. For example, when the price of pork in the market
increases, consumers would want to buy chicken that has a lesser price, and
as I observe Elastic demand means that it would always have its substitute
that is why when the price goes up the quantity demanded goes down for
consumers would buy something that is cheaper. Inelastic demand is when the
price goes up you buy a little more and when the price goes down you would
buy a little bit less. For instance, the price of gasoline is very important and
has no substitute for it. So, even when the price goes up you would still buy
but a little less only. When it comes to Inelastic demand the quantity is
insensitive to a change in price. When the price goes up the quantity goes down
in the total revenue of Inelastic and Elastic. So, Inelastic demand if the price
goes up a lot but the quantity decreases a little bit, it means that means when
the demand is inelastic the price goes up the total revenue goes up or when the
price goes down, the total revenue goes down also. As you observe that gas
stations never had sales because when they lower the price, the total revenue
will decrease. In Elastic demand when the price goes up a lot of people don’t
want to buy it so, the total revenue fall but when the price goes down the total
revenue goes up that is why elastic demand products always have sales