The elasticity of demand

Greetings, colleague back with the field of Economics and good as a teacher also that area, in previous publications the theme was from the beginning from economics as a science to explain the law of command and supply, the phillips curve, inflation, to Now it is good for you to share what the elasticity of the demand is, and we as consumers or demanders of goods and services must know the behavior of the Economy in the way that it has an impact on a society at the level of savings and consumption considering the Law of Scarcity We speak of perfectly elastic demand when a change in price, regardless of its magnitude, does not cause any variation in the quantity demanded. From a technical point of view, dear reader, what we are trying to make known is whether the quantity demanded of the good and services remains constant in the face of any price variation, its elasticity becomes practically zero, and only goods with this type of elasticity have A special characteristic, in the case of medicine, is its different levels of high prices, equal to the need, it has to be compared to cover that indispensable need.

What is considered a strategy applied in an economic model is usually applied as mediated for the case of inelastic markets, the demand is almost independent of price variations, which is evidenced by setting prices in this case is to increase the price to sell the same amount as before seeking a balanced species. Besides, almost always, dear reader, the elasticity index is negative, which applies the following: The elasticity is calculated with the following formula: Ed = (dQ⁄Q) / (dP⁄P). This formula measures the sensitivity of the quantity demanded (Q) according to the changes in the price (P), pretend that it is not difficult at all, since it tells us that the variations in the price have a relatively small effect on the quantity demanded of the good, from my point of view we also want to know how only a classically inelastic product is insulin, thanks to the fact that said variations in the price of insulin have practically no variation in the quantity demanded, it is always about ee regulate an economy.

What would be the most influential consideration in elasticity, well it is defined by the type of product or good and service according to your need, your demand will be rather inelastic; And for the case if the luxury product its demand will be more elastic, the conditions of the level of consumer need are so sensitive.