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Hey, you already know the law demands says theres an inverse relationship between price and quantity So the price goes up for a product people buy less the price goes down people buy more but the question now is how much less or how much more they buy and thats the idea of elasticity Elasticity shows how sensitive quantity is to a change in price what happens to quantity when theres a change in price depends a lot on the type of product first we are gonna talk about the idea of inelastic lets talk about Gasoline gasoline has inelastic demand this means when theres an increase in the price of gasoline the quantity demanded decreases, but just a little bit So when the demand is inelastic the quantity is insensitive to a change in price And it goes the other direction when the price falls the quantity demanded goes up But just a little bit. Right, you dont jump in your car when the price goes down and grab your engine At stop signs thats not what you do So when the price goes down