The expense elasticity of a product describes how sensitive suppliers and buyers are to changes in price. It doesn’t change in relation to supply and outcry, but it defines the slope of each curve.
A product with high price elasticity of demand will see demand be sharply when prices rise. For the product with high elasticity of demand, the downward-sloping demand curve crops flatter, and for every change in price, there is a large change to the quantity demanded. A demand curve for a product with low ductility appears to be steeper, because the quantity demanded doesn’t change much, even if prices do. Products with low valuation elasticity are described as being inelastic.
Products with high price elasticity are generally non-staple goods. For sample, the demand for teeth-whitening kits may be highly dependent on price and thus fairly elastic. The demand for toothpaste, on the other lunch-hook, might be relatively inelastic regardless of whether the price changes. A key factor affecting demand elasticity includes the availability of substitute goods, or goods that are exact close to the product in question.
The amount of time available to ponder different options and the type of good also question; a consumer might drive around shopping for the best deal on items that consistently take large carve ups of a budget, such as groceries, while ignoring price differentials for small and relatively infrequent purchases, such as shoe sparkle.
Similarly, a product with high price elasticity of supply has a flatter, upward-sloping curve. A product with a low stretchability of supply has a steeper curve. Price elasticity of supply can be calculated by dividing the percentage change in supply by the percentage variety in price. The same factors that affect the elasticity of demand affect supply elasticity, namely the availability of substitute inputs and the moment needed to make changes to production. (For related reading, see “How Does Price Elasticity Affect Supply?”)