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this post was submitted on 12 May 2024
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Demand was elastic until it wasn't.
Isn't it inelastic (D changes at a less than proportional rate to price) or have I got it mixed up?
Correct- essentials tend to be inelastic.
They may have the incorrect belief that elasticity is the ability to absorb a price change, rather than how much Q changes when hit with a change in P