elastic demand
- noun
- /ɪˈlæstɪk dɪˈmænd/
- Specialized
:
demanda elástica
- Yeah, luxury goods would have elastic demand because basically, you know, you don't really need them.
Indeed, with perfectly elastic demand, there is no surplus.
- Indeed, with perfectly elastic demand, there is no surplus.
- So with perfectly elastic demand, OK, you're going to get prices fixed, but only quantity changes, OK.
Examples
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Such elastic demand for electricity at its own price may reflect recent increases in self-generation.
Academic text (1993) -
Relative competitive advantage from IT investments is not necessary for it to result in sustained and substantial value creation; in fact, IT that confers a relative competitive advantage in a market with highly elastic demand may not create much value.
Academic text (2002) -
Indeed, with perfectly elastic demand, there is no surplus.
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Sensitivity analysis reveals that more elastic demand and increased transmission capacity more than double these gains.
Academic text (1993) -
One of the reasons for the elastic demand for the core is the inclusion of Saudi Arabia, which meets 70% of the demand for the core's oil.
Academic text (2000) -
When the price of the concert tickets dropped, the elastic demand for them surged, leading to a sell-out show.
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Products with elastic demand see a significant increase in sales when prices are lowered, as consumers flock to purchase them.
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Understanding that coffee has elastic demand, the shop owner decided to lower prices during the holiday season to boost sales.
Antonyms
How Price-Sensitive
- Specialized
- Specialized
- Specialized
Surface Forms
Morphology
The noun phrase is directly compositional: 'elastic' conveys responsiveness/flexibility and 'demand' denotes the quantity demanded at prices, so together they yield 'demand that responds markedly to price changes.' Although used as a technical economics term, the meaning follows transparently from the constituent words and would be inferable by a B1 learner who knows both terms.
Etymology
Elastic demand comes from the image of a stretched elastic band. The word elastic means something that can stretch or shrink, so when price goes up or down the demand 'stretches' or 'shrinks' a lot, and the term means demand that 'changes a lot when its price changes'.
