The importance of price elasticity of demand:
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1.Highly elastic demand (non-food products say computer, Fig. 13): In this case, increase in supply will result into large increase in sales (Q1 to Q2) with slight fall in market price (P1 to P2).

2.Relatively inelastic demand (food products say potato, Fig. 14): In this case, increase in supply will result into large decrease in market price (P1 to P2) with increase in sales (Q1 to Q2).