 If a product changes its price, we expect there will be a change in the quantity demanded  The degree of change is the elasticity of the product

 Elastic: if price changes only a little, and quantity demanded changes a lot  Inelastic: if price changes and the quantity demanded does not change  What are items that are elastic in demand and inelastic in demand?

 Usefulness or satisfaction that people get from a good or service  The utility of a product will determine the elasticity

 Diminishing Marginal Utility  With each use of the good/service, the degree of satisfaction gained (utility) from the good/service will gradually lessen

 Products one buys less of when income rises  What are some inferior products as you grow up and make more money?

 Changes in price offered by market will affect the amount of goods produced by businesses

 Depends on how easy it is to make more of the product

 If quantity can change easily, it is elastic  If quantity cannot change easily, it is inelastic