Products that have unitary elastic demand display an equal shift in the demand, in response to the change in price. Products that have inelastic demand display a small shift in the demand, in response to a change in price.
Price elasticity is used to understand the relationship between the consumption of a product when the price diversifies. There are five types of price elasticity of demand based on this relationship.
Perfectly elastic demand is where the demand is infinite only at a specific price. Even a slight change in the price will eliminate the entire demand for the product, resulting in zero demand.
Elasticity coefficient is the numeric value of the percentage variation in quantity demanded divided by the percentage change in the product price.
Difference Between Elastic Demand and Inelastic Demand
Inelastic demand is where the demand shifts in a small variation in response to a change in price.