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Is the demand for all goods equally sensitive to price changes?

April 26, 2017changes DEMAND equally price sensitive

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Is the demand for all goods equally sensitive to price changes?

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No, the demand for some goods is less sensitive to price changes than others. Economists use the term “elasticity of demand” in referring to the price sensitivity of the demand for a particular good. If the demand for a good is sensitive to price changes, it is called elastic. If the demand for a good is not sensitive to price changes, it is called inelastic.