Glossary

Availability of substitutes

more substitutes → more elastic. Coke (specific brand) is elastic; cola (broad category) is less so. 2. **Necessity vs. luxury** — necessities are inelastic, luxuries are elastic. Insulin is inelastic; vacations are elastic. 3. **Time horizon** — the long run is more elastic than the short run. Gaso

Learn More

Related Terms