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It is refer to the variability of demands based on prices change, as it is considered the degree to which demand for a good or service varies with its price. Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, appliances, cars, confectionary and other non-essentials show elasticity of demand whereas most necessities (food, medicine, basic clothing) show inelasticity of demand (do not sell significantly more or less with changes in price).
If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). Conversely, a product is inelastic if a large change in price is accompanied by a small amount of change in quantity demanded.
It is really a good question which is focused on the demand in the market and how to increase it for a certain Product or diverse products. There is a policy adopted to increase the size of the demand for a certain product and good by reducing the price or encourage the consumer by another alternative offer to give a buyer one piece free if he buy two pieces or more from the same category of the goods and commodity. There are many choices to increase the size of the demand and then increase the quantity of the goods and articles sold.
The relationship between price and quantity required and best way of calculation the effect on the change of the quantity required.
