Types of Elasticity

Generally, supply and demand show three different types of elasticity:

Inelasticity: changes in price does not produce changes in supply or demand. Food, gasoline, emergency room medicine, and many other goods show little change in demand as a result of changes in price. Unique goods cannot show changes in supply regardless of changes in price.

Unit elasticity: changes in the quantity demanded or offered faithfully reflects changes in price. Examples of this might be things like restaurant meals, consumer electronics, clothing in excess of essentials, and so on might have unit elasticity.

Elasticity: quantity demanded or supplied is highly sensitive to changes in price.