Economics Terms A-Z
Elasticity and Inelasticity
Elasticity refers, in its most basic form, to how much an individual, a business, a producer or a consumer changes its demand, or amount of goods supplied, as a result of price and income fluctuation. It is a core economic concept and provides answers to some central questions, such as how much more or less a product will sell if the price is raised or lowered or how much these price changes will affect the sales of other products.
An economic variable (a product or good, etc.) that has an elasticity value of one will respond proportionally to changes in the economic environment. If it has a variable above one, it responds more than proportionally to these changes, and if the elasticity value is less than one it will respond less than proportionally. An example of products which have low elasticity values are those which are essential to consumers, such as medicine. Products which have higher elasticity values are generally less essential, such as toys.
The formula for elasticity is very simple. A variable’s elasticity can be worked out by dividing the percentage change in quantity by the percentage change in price. Elasticity is important for businesses which compete with one another as it affects the prices of their respective goods and their customer retention rates.
A few things can drastically change the elasticity value of a product. The three main factors are the availability of substitutes for the product (especially if those products are cheaper), the necessity of a product, and time. Time is important because if a product remains costlier for longer, its elasticity value can (this is dependent on its necessity and the availability of substitutes) increase over time as people resent having to spend more.
- Remote Learning
How to Choose an Online Course or Degree
INOMICS has seen a surge in demand for online courses recently, with far more students searching for higher education alternatives. With the effects of COVID-19 ongoing, and many institutions still closed, enrolling in a fully online program or online degree has clearly become the best way to continue self-improvement and career development. Institutions offer a variety of online degree programmes and massive open online courses (MOOCs), which often have less expensive tuition fees.
- A Discriminatory Pandemic
The Racial Inequalities of COVID-19
Dubbed ‘the great equalizer’ at its outset, COVID-19 has often been described as picking its victims at random. Blind to race, ethnicity, and gender, it sees just a human body, a host that enables it to do what all pathogens are programmed to do: spread. While this, from a biological perspective, may be true, the disease’s sweep of the globe has been anything but equalising. Data from both the US and UK - who along with Brazil compete for the honour of worst pandemic response - show that in terms of cases and deaths, minorities are hugely overrepresented.
- Preston Leads the Way
Preventing the Death of UK High Streets
The internet has given us many things: unlimited information, ever-expanding interconnection, myriad means of procrastination - in some places it’s even helped birth democracy. But as one hand giveth, the other, as is often the case, taketh away. And in the UK, it looks like the gift of online shopping may come at the expense of our high streets - and the thousands of livelihoods they maintain.