Price Elasticity

Biological Parallel

Optimal foraging theory predicts diet breadth elasticity: when preferred prey becomes scarce (price increases), generalist predators expand their diet to include less-profitable prey types. Crows are highly elastic—they readily switch from large insects to seeds to carrion as availability changes. Specialist feeders like koalas are inelastic—they consume only eucalyptus leaves regardless of scarcity, even starving rather than switching. This elasticity spectrum mirrors consumer price sensitivity: some products have ready substitutes (elastic demand), while others like insulin have few alternatives (inelastic demand).