The Elasticity of Demand Idea and Its Application to the Demand For Rice In The Philippines

This research discusses the idea of elasticity and how it relates to the demand for rice in the Philippines. By defining the concept and its essence and identifying the variables that affect rice demand changes, it specifically aimed to discuss the role of elasticity of demand in general and the reasons for its use in the Philippine rice market. The researcher used a literature review to understand the justifications for using elasticity. Findings indicate that demand elasticity is crucial for international trade, pricing decisions, monopolistic analysis, and formulating governmental regulations. Results also show that the price has the biggest impact on a product's demand