elasticity and market structure

Elasticity refers to how much the demand or supply of a product changes when its price changes. If demand is elastic, a small price increase can lead to a big drop in sales, while inelastic demand means sales don’t change much with price changes. Market structure defines the organization and characteristics of a market, impacting competition and pricing. Common types include perfect competition, monopolistic competition, oligopoly, and monopoly. Each structure affects how businesses price their products and respond to market changes, ultimately influencing consumer choices and economic dynamics.