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Elasticity - Coggle Diagram

- - - - Key Terms
        
        Perfectly inelastic
        
        It's where a change in price does not have an effect on the quantity demanded
        
        Elastic
        
        It's where a change in price does not has an severe effect on the quantity demanded
- - - - Example: LEGO's demand is affected by the large amount of substitutes of LEGO that exist in the world
  - - - Example: Apple. When compared to other phones, Apple is by far the most expensive, but it's tolerated because Apple phones have over time stayed ridiculously expensive, people still buy Apple Phones.
  - - - Example: More people are able to buy instant noodles as food, but not everyone can buy a steak every day for their food
- - - - Where the change in demand is not pronounced when a change in price happens.
    - - Where the change in demand is severe following a change in price.