The concept of the demand curve is one which is easy to understand. However, we go deeper into issues such as elasticity, demand curves for different types of economics goods and even deriving it.
We shall understand the concept of elasticity using a few examples. If you were a sports drink fanatic, no matter how much the price of sports drinks increases, you are still likely to consume almost the same amount of sports drink in a month! You might buy lesser bottles but you will still consume them.
Assuming you were an alcoholic instead, you don’t drink much sports drink and now the price of sports drink increased. I think you’ll probably not buy anymore sports drink. That is the concept of elasticity. How sensitive are you when the price of a particular good increases or decreases?
Income in kind simply refers to a whole where there is no money. People earn their incomes in terms of goods and they are able to trade them for other goods.
At the end of this video, you should be able to:
Additional learning material: