Question

What does it mean to be elastic or inelastic

use the words price and demand to explain your answer

Answer 1

For a market to be elastic, a change in price will have a "big" effect on consumer demand. For inelastic markets, a change in price has little to no effect on demand.

I remember it by thinking of a rubber band. It is elastic and can be stretched with force (meaning to it is able to be manipulated). Inelastic things, like a rock, don't really change unless something dramatic happens to them.