How do determine if the product is elastic and inelastic?

To determine if a product is elastic or inelastic, you can analyze its price elasticity of demand (PED), which measures how much the quantity demanded changes in response to a price change. If the PED is greater than 1, the product is considered elastic, meaning consumers are sensitive to price changes. Conversely, if the PED is less than 1, the product is inelastic, indicating that demand remains relatively stable despite price fluctuations. Additionally, factors like the availability of substitutes, necessity versus luxury status, and the proportion of income spent on the product also influence elasticity.