Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.

PART 2 How Markets Work
Chapter 5 of 36 Elasticity and Its Application
Section 3 of 19
…
Consumers usually buy more of a good when
· its price is lower
· the prices of substitutes for the good are higher
· the prices of complements of the good are lower
· their incomes are higher
…
To measure how much consumers respond to changes in these variables, we use the concept of price elasticity.
In Figure A:
On the left panel A1, large price increase from P1 to P2 results in relatively small decrease in quantity demanded from Q1 to Q2, this is a case of inelastic demand.
On the right panel A2, small price increase from P1 to P2 results in relatively large decrease in quantity demanded from Q1 to Q2, this is a case of elastic demand.
For example:
Inelastic demand is when price charged increases by 1% the quantity bought decreases by less than 1%.
Elastic demand is when price charged increases by 1% the quantity bought decreases by more than 1%.
High elasticity means high price sensitivity.
…
The law of demand states
· a rise in the price of a good lowers the quantity demanded
· a fall in the price of a good raises the quantity demanded
Price elasticity of demand measures how much the quantity demanded responds to a change in price.
Demand for a good is elastic if the quantity demanded responds greatly to change in price.
Demand for a good is inelastic if the quantity demanded responds moderately to change in price.
Price elasticity of demand for a good measures how willing consumers are to
· buy more of a good as its price decreases
· buy less of a good as its price increases
… …
consumer response to price change
kakaku henkō ni shōhisha han'nō
価格変更に消費者反応
(Copy the Japanese into Google Translate and listen and notice how choppy, therefore easy to pronounce, it sounds. The line over vowels means hold the sound longer.)

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