The stock market has become a global trend nowadays. More and more individuals are diverting their attention to this field. In this avenue of trading, you will receive valuable insights about the buying or selling aspects. But it also provides us with information about how to achieve your professional goals, a way to understand the economy, building career opportunities and wealth creation factors. 

At The Profits Manager in Ludhiana, we can provide you with comprehensive stock market courses. In these courses, all of the basics and strategies will be covered. Another element in the stock market that will assist you further in life is the price elasticity of demand. In simple terms, elasticity is referred to as when a valuable experiences a change in price, and then its demanding quantity also changes.

The price elasticity in demand is a much broader concept, and there are various types of it. All of these types are divided and measured with the help of different graphical categories. The types are: 

• For perfectly inelastic: In this kind of price elasticity in demand, the extent to which the price increases does not influence any change in the demanded quantity of that product or service. For example, if the price of food increases, the demand for those food products will remain the same as it is a necessity for you to survive. 

• For inelastic demand: If you examine both of these concepts, whether they are perfectly inelastic or inelastic, then they are somewhat similar to each other. However, an aspect that differentiates inelastic is that it offers a bit more flexibility. In products or services, whenever there is a change in cost, there is a slight change in the quantity demanded of that specific product. An example of inelastic demand is medicines such as insulin for all diabetics, where they reduce the extent of consumption while the demand is still there.

• For unit elastic: In Ludhiana, according to our stock market courses, the prices and demand quantities change at the same rate and percentage. If we consider unit elasticity with the help of an example, then if the prices of the products such as mobile phones or any other electronics change, such as going up to 5% higher, then the quantity of demand for that electronics will come down by 5%. 

• For elastic: Regardless of the flexibility offered, if the product has experienced a lot of fluctuations in its prices, then that demanding quantity will automatically see some variations. We can define it as a kind of designer clothes and high-end electronics; there are substitutes, not necessities, which leads to their decline in demand. 

The price elasticity of demand is not a straightforward process. There are some elements of these processes that severely affect the prices, such as : 

1. The more replacements a product has, the more elasticity will be incorporated. In that case, it could easily provoke you to turn to some other options that might be promising for you. 

2. As we know, whether there is an increase or decrease in the price of the product, it is a necessity, and you need to purchase it to survive. 

3. Another factor that plays a major role in this is your income. If the product that you are purchasing is taking up most of your budget, then the demand tends to be much more inelastic. 

Conclusion : 
To be a skilled and profitable trader, you need to be aware of all the strategies of the stock market. At The Profits Manager in Ludhiana we clear all the aspects that are important and the price elasticity of demand is one of those aspects that could assist you in the trading journey. Assessing all of its kinds and factors will help you in getting a better understanding of the topic.