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Market elasticity

I don't understand what "Market Elasticity" is?

-A question is on the company "Dollar Tree" - all prices are at one dollar. does this make it elastic or inelastic? Why

-What about the market? Is the Market for stores selling things for one dollar (99 cent stores, Family dollar, etc) elastic or inelastic? Why?

Please briefly explain this in simple easy to understand terms

Solution Preview

Market elasticity measures total market response if all suppliers of a product increase their prices. It is much lower than the price response elasticity faced by a single supplier as all the suppliers are cumulatively increasing their prices.

Reference: http://books.google.co.in/books?id=bXsyO06qikEC&pg=PA45&lpg=PA45&dq=%22market+elasticity%22&source=web&ots=-S4LusK24P&sig=AvwM4Py9BgsjoPgkb18uAre65ZE&hl=en&sa=X&oi=book_result&resnum=7&ct=result#PPA45,M1

-A question is on the company "Dollar Tree" - all prices are at one dollar. Does this make it elastic or inelastic? Why

It really varies from product to product. A product's demand which is selling for one dollar may be perfectly elastic whereas another product's might be perfectly inelastic or may lie ...

Solution Summary

Explain Market elasticity: Dollar Tree, all prices are $1; is that elastic or inelastic?

$2.19