Elasticities can make it hard to understand how much benefit consumers and producers get in the market.

1. Consumer Surplus:

   • Elastic Demand: When prices drop a little, people often buy a lot more. But it can be tough to know just how much more they will buy, which makes it hard to see how much they really benefit.

2. Producer Surplus:

   • Elastic Supply: Producers might have a hard time changing how much they make quickly. If prices drop suddenly, they could lose money.

Solutions:

• Better market research can help solve these problems. By understanding demand and supply changes better, we can make surplus calculations more accurate and help the market run more smoothly.