Elasticity of Demand: Let's bring up another important marketing concept to consider: Some of you have studied this in Economics classes. If a product or service is labeled Elastic, it means that demand shifts dramatically with a price shift. A classic example is if:

Price increases=Consumers stop buying as much of it.

Marketers need to be especially aware of products and services with Inelasticity. A product is inelastic if consumers do not alter their buying habits whether the price goes up or down. Basically, we still need them and find a way to pay. Although some users may drop out the majority will just pay more. Some common products with "demand inelasiticity" are:

• gasoline
• milk
• diapers
• cigarettes
• beer & alcohol
• medications

Can we think of any others?