Why some products are price elastic while some others are price inelastic?

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Why some products are price elastic while some others are price inelastic?

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It’s another feature of the old supply-and-demand concept. It’s more of a semantic/definition construct. If something is in high demand and has limited supply, it will be price-inelastic; seller can pretty well get whatever price he asks. If something is in low demand and high supply, minor price differences will result in wild swings in sales – very price-elastic. The tricky part is trying to determine – beforehand – whether something will be price-elastic or not, and where that elasticity will actually come into play.( i.e., what price do you put onto something; what is the “real” demand). There is no reliable way to predetermine this; it only becomes visible after-the-fact, and often not at all if there is no way to change the price and gauge the resultant impact on demand.

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