[Note: The distance between cities in California (US) distance chart below is straight line distance (may be called as flying or air distance) between the two locations in California (US) calculated based on their latitudes and longitudes. This distance may be very much different from the actual travel distance.]
In drawing the demand schedule or the demand curve for a good we take income of the people as given and constant. When as a result of the rise in the income of the people, the demand increases, the whole of the demand curve shifts upward and vice versa. The greater income means the greater purchasing power.
Elasticity of demand is consumers' responsiveness or sensitivity to changes in price. Elastic demand is when consumers buy significantly more or less of a product when its price changes. Inelastic demand means that an increase or decrease in price will not significantly affect demand for the product. The boot camp is providing some examples of the types of elasticity. One of the toy company's products is a baby item that simulates a car driving.