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oksian1 [2.3K]
3 years ago
8

What is elasticity and inelasticity of supply and list the only factor

English
1 answer:
SashulF [63]3 years ago
8 0
Elasticity is how the variable responds to changes in price.For example:For a living you manage a car company, and you increase the price of the cars and it stops selling as much as it did.That's because people thought the cars was too expensive and decided to go to another company to buy cheaper cars.However inelasticity is the opposite in which variable doesn't change because of price for example the company Lamborghini doesn't does not lose money because of price of their Lamborghini's does not matter because people who can afford a Lamborghini doesn't care about shelling out hundreds of thousands or millions of dollars for a 200mph car. 
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