The demand for beer is elastic.
Beer is not a necessity good and therefore demand is highly affected by price. A good demonstration of this is the heavy summer price competition between manufacturers and the popularity of discount brands.
It's regulated by state taxes.
Beer is elastic because it is not a necessity for survival and because there are many substitutes for beer (ie red wine, champagne), demand is highly affected by price changes.
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
elastic - also called transitory demand.
1. perfectly elastic demand 2. perfectly inelastic demand 3.relative elastic demand 4. relatively inelastic demand 5.unitary elastic demand
Inelastic Demand & Elastic Demand
there are five types.1).perfect elastic demand,2)perfect inelastic demand,3).relatively elastic demand,4).relatively inelastic demand4).unity elastic demand
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
it is perfectly inelastic
An example of perfectly inelastic demand would be a life-saving drug that people will pay any price to obtain. Elastic demand is the opposite of this.