In this article, we’ll use the term elasticity to refer to the proportion of our consumption that can be accounted for by the price of the good. If a good is better at the low end, at the low price, or at the high end, it will have more impact on our consumption if it is less expensive.
It’s a very complicated issue that you should consult a statistician to understand. But some economists say that if we’re willing to live with finite resources then an increase in the price of a good or a decrease in the supply of something is less likely to hit us. For example, a decrease in the price of a good from $1 to $0.99. So a more expensive good is less likely to be used, and a less expensive good is more likely to be used.
You could make an argument that if we were willing to forgo some things we would want to eat we would be more likely to want to consume the food we would be willing to forgo, but you also have to consider that when we do want exactly what we want we tend to make it and when we don’t, we eat what we want and don’t want, or we don’t eat at all.
If we were more willing to forgo some things we would be more likely to want to consume the food we would be willing to forgo and less likely to consume the food we would be unwilling to forgo.
So in essence, if you pay higher prices for a certain thing you are more likely to buy that thing, if you pay lower prices for the same thing you are less likely to buy that thing, but when you are willing to pay slightly higher prices for something, you are more likely to buy it.
The way we price things is by the amount of demand for them, so we can say that higher prices is usually good and that lower prices is usually bad. The reason higher prices are good is because they increase the amount of stuff that people want to buy. For example, if we were to buy that bottle of wine that costs a dollar, then we will be willing to spend $1.01 on it. We will also be willing to spend $1.
But if we put it on a table, we are not willing to spend less than the cost of the table. So we will be willing to spend 3.
But why? Why do you think that we do not want to spend more than the price of the wine? Why do you think we want to spend less than the price of the wine? We want to buy what we can afford.
This is a big question that I think is fascinating to ponder. I mean, the question really is to what degree is the amount you are willing to spend going to determine the amount of money you should be willing to spend.
This is a great example of how economists are able to apply the theory of price elasticity. The question is, “How much should I be willing to spend on a fixed quantity of goods?”. On one hand, if the amount you are willing to spend is a constant (and you do not get any more), then the amount you will be willing to spend will be a constant too.