Ranges of Elasticity

Fairly Elastic Demand- Shows that a change in prices will leads to high quantity demanded obviously due to high responsiveness of consumers. This often occurs in luxuries and causes firms will get more profits and revenues

Fairly Inelastic demand- Shows that a change in prices will leads to change in quantity demanded but not really obvious changes due to low responsiveness of consumers. This often happens in goods and causes firms earn less profits and revenues.

Unit elastic demand- Shows that there is an equal between the change in prices and the change in quantity demanded due to no any responsiveness to consumers and the consumerisation still goes on.

Perfectly elastic demand –Shows that the increase in prices will cause the quantity demanded is zero due to buyers have fully responsiveness to the price changes. Recession occurs to the firm.

Perfectly Inelastic Demand- Shows that  when there is a change in the prices, it will not affects the change in quantity demanded due to no responsiveness to consumers.

Written By 

Elbin Wong Tze Bin