IntroductionElasticity is one of the most important theories in economics and it is a measure of responsiveness (Baker, 2006)i. There are mainly two types of elasticity, elasticity of demand which includes price elasticity of demand, income elasticity of demand, and cross elasticity of demand as well as price elasticity. supply (McConnell, Brue and Flynn, 2009)ii. The degree to which a supply or demand curve responds to a change in price is the elasticity of the curve (Lingham, 2009)iii. Elasticity varies across products, as some products may be more essential to the consumer. Consumer price elasticity plays an important role in the lives of consumers. Price elasticity of demand is the sensitivity of demand for a product when its price changes (McConnell, Brue and Flynn, 2009)iv. Cafes like Panera Bread refuse customers' payments and politely ask them to "take what you need and leave you your fair share" (Strom and Gay, 2010),v leading more people to get products like food at a fair price. ready to pay. Based on the income elasticity of demand, consumers can lead better and healthier lives because they will purchase higher quality products as their income increases. People will go to Italiannies for pizza and not Pizza Hut, because Italiannies offers a better, tastier, healthier and wider choice, even if it is more expensive. With cross elasticity of demand, consumers can obtain a product of the same quality at a lower price because rivalry between substitute goods will lead to a reduction in price or an improvement in quality. Consumers can travel with MAS Airlines at a lower price because rivalry between MAS and other airlines has resulted in price reduction (Gunasegaran, 2011)vi. Consumers on a budget can also buy what they need. Consumers can get more value from a bundle when they purchase complementary products when they "go together", for example: the McDonald's McValue breakfast which includes a burger, fries and a soft drink, all for only RM5.95 (My Food Fetish, 2009)vii. Through this, consumers can enjoy convenience when purchasing certain products. Trade elasticity is also important for businesses. Price elasticity of demand is very important for businesses to determine the price of their products as well as their total sales and revenue. Newell showed that by cutting the price of Left 4 Dead in half to $25 during a Valve promotion, its sales increased by 3,000% (Irwin, 2009)viii.