Elastic and inelastic demand curves show how much people change their buying habits when prices go up or down. This is a really interesting part of economics!

Elastic Demand:

• When prices go up, people buy a lot less.
• This means that the price elasticity of demand (PED) is greater than 1.
• An example of this is luxury items or things that are not essential, like fancy designer shoes.

Inelastic Demand:

• In this case, even if prices rise, people will still buy almost the same amount.
• The PED here is less than 1.
• Think about things we really need, like medicine or basic groceries.

To sum it up:

• Elastic means people are sensitive to price changes, and the demand curves are flatter.
• Inelastic means people aren't very sensitive to price changes, and the curves are steeper.

Knowing the difference between these two types of demand helps us understand how price changes can affect what people choose to buy!