...
...
Liquid Crystal Elastomers: Exploring smart plastics, reversible adhesion and material automation

...

Liquid Crystal Elastomers: Exploring smart plastics, reversible adhesion and material automation

Posted | Updated by Insights team:

Publication | Update:

Jan 2023
...

Eugene M. Terentjev, Professor of Polymer Physics from the University of Cambridge, enlightens us on Smart Plastics, specifically on how liquid crystalline elastomers bring automation into materials

While we are used to automation, machine learning and AI in the technology sector – known as the Fourth Industrial Revolution – polymer researchers at Cambridge have now developed a new class of materials with physical intelligence. These are plastics that feel and respond to their environment, making decisions, analysing and diagnosing problems without human intervention. Liquid crystalline elastomers are truly the material of the future.

The focus of the Horizon 2020 project APRA (Advanced Grant “Active Polymers for Renewable Functional Actuators”) is achieving autonomy through intrinsic material function rather than relying on embedded electric or mechanical solutions. We have developed these multifunctional polymer materials, and ensured that they remain sustainable by keeping them recyclable and reprocessable despite relying on their crosslinked nature – all made possible by the novel chemistry of dynamic bond exchange.

What are Liquid Crystalline Elastomers?

Liquid crystal elastomers (LCEs) are a radically new polymer system, akin to rubber, but with remarkable and unexpected properties that arise from its intricate molecular structure. The polymer had rigid rod-like units separated by flexible chains. This structure allows for local liquid-crystalline order with the anisotropy axis, where the rods align. These rods can then rotate separately and independently of the overall rubber-elastic matrix.

The invention and the early studies of LCEs made almost 30 years ago, have laid out the fundamentals of understanding these materials. Our research group was at the foundation of these studies. The new generation of robust main-chain LCEs developed under the APRA programme is based on dynamic networks (sometimes called ‘vitrimers’) that allow re- moulding the crosslinked thermosets and re-programming their local orientational order. This also makes the material one of the first totally recyclable thermoset plastics.

One unique LCE property is called ‘soft elasticity’, which combines the dissipation properties of a liquid with the mechanical strength of a thermoset to produce levels of vibration damping far above market-leading technologies based on polyurethane or silicone. This plays with the alignment of the rod-like molecular segments as fluctuation in their alignment converts energy to heat, much like friction. The sound or physical vibration will deliver the energy, but none will pass through the material.

...

Adhesion energy is very closely related to mechanical damping, so LCE can also exhibit a strong pressure-sensitive adhesion (PSA). It will feel sticky to touch and bond to most surfaces. However, simply heating the LCE will turn it into a smooth isotropic elastomer with little or no surface energy giving a reversible adhesive property to LCE.

The other fascinating effect, which promises ground-breaking applications and devices, is that LCEs reversibly contract and expand on heating and cooling. If the material is programmed to a given shape when aligned, then this will become its natural shape. However, heating the material will cause up to 100-200% contraction, which is fully reversible (the LCE extending back into its natural shape when cooled). This mechanical actuation allows us to design actuators, artificial muscles, or an LCE engine working on a difference in temperature between two containers.

Despite their long history in academic research, LCEs are only beginning to penetrate
industrial applications and design, and our team have been at the very beginning of this development. We work together with the start-up Cambridge Smart Plastics, developing marketable LCE applications in vibration isolation, reversible adhesion, microfluidics, and even working on the LCE engine converting waste heat into useful work.
...

Applications

Vibration and acoustic damping – the simplest use for LCE would be to leverage its internal damping to create sound isolation pads, or dampen vibration from the road to improve the accuracy of LIDARs and/or passenger comfort.

PSA pads – utilising thin layers of LCE will enable fully reversible adhesive tapes that will eliminate the “single-use” nature of today’s adhesives. Most technology, especially many automotive systems, are totally held together by adhesive tapes that must be disposed of and replaced during repairs. LCE adhesive tapes would simply release on heating and then be free to be reused in the same product or elsewhere.

“Smart” structures – leveraging the artificial muscle, simple demonstrators have already been produced for heliotracking solar panels. Using the light to trigger the actuation, a platform can be built that will always lean towards the light increasing the contact angle and power generation of the panel.

Heat to energy conversion – storing waste heat in the LCE will allow energy to be held in the material. This can be through a simple motor design or by lifting weights or pumping water using the LCE’s actuation.

Bringing the state-of-the-art in polymer science to industry

Cambridge Smart Plastics is a start-up that aims to revolutionise commodity plastics, accelerate innovation and technology translation, and foster our next generation of innovators. Embedded in the University of Cambridge, they are building industrial collaborations and scaling up the demonstrators and technologies developed here to introduce these materials into the market. These LCE materials really have a chance to make a difference with the reversible PSA characteristics making sustainable reusable adhesives tapes viable, or recyclable elastomers for damping applications like isolating LIDARs for increased accuracy and safety of vehicles.

If you would like to learn more or join Cambridge Smart Plastics on this journey, then reach out today. The team is always excited to hear ideas and co-develop applications for this exciting new material.

The University of Cambridge, through its ERC- funded APRA project, and the technology spinoff Cambridge Smart Plastics are developing a new concept using liquid crystalline elastomers which are reversibly adhesive, as simple as a hand that grips and let’s go on demand.

We have made a naturally sticky rubber that a little heat will alter and allow easy detaching. On cooling, these surfaces immediately get sticky again and are ready to get to work and have a second life. The world’s first in terms of a truly reusable adhesive.

Pressure-sensitive adhesion and the future of reusable tapes

Pressure-sensitive adhesion (distinct from the adhesion by gluing) is a large and expanding field of science and technology, relying on tacky and sticky surfaces. All adhesive tapes are single-use and disposable by their nature. Since over 45 billion square metres of pressure-sensitive adhesion (PSA) tapes are produced annually, the environmental impact should not be underestimated.

Even structural bonding tapes that claim to last for a product lifetime end up replaced by new when repairs or adjustments are made. There is also no realistic route to recycling such tapes given the chemicals at play, the compounded plastics or fabrics carrying them, the spoiling of surfaces and/or polymerisation of glues.

Looking at the state-of-the-art in adhesive tapes, there is no truly reusable tapes. The nearest state-of-the-art exists rely on simple concepts like “hook-and-loops” on each side to create a Velcro, or alternatively a sticky elastomer is stretched to detach, but at the cost of destroying the tape.

On the premium and performance end of the market, the best technologies rely on weakly crosslinked polymers. These leave no residue and are reusable until they spoil (surfaces contaminated), but delaminating them is difficult as the full strength of the adhesive must be overcome and this often leads to tearing or damage to the tape itself.

Current and future chemicals regulation affect adhesive tapes

Incoming EU bans for ADCA, DEHP, toluene, and formaldehyde (essential blowing agents for rubbers, plasticisers, and solvents), or the increasing focus of the anti-plastics lobby on how tapes have “dodged” the requirements for recycling (both incorporating and their own end-of-life).

Liquid crystalline elastomers (LCE) represent a highly unusual and exciting ‘new state of matter’, first introduced in the early 1990s by the work of Finkelmann, Warner and Terentjev. By utilising the known properties of liquid crystals in a rubbery polymer network, some remarkable functionalities were obtained. The main buzz, and the focus of researchers over the last few decades has been exploring the thermal and photo- actuation properties of LCE (including our own ERC APRA project).

In the liquid crystalline temperature range, the mesogens that make up the core of this material, align and stretch the polymer chains into an elongated conformation. By heating the sample, this orientation is lost, and the polymer backbone can relax into a more favoured random-coil conformation. This leads to a macroscopic, reversible deformation called the large-stroke actuation, where all the attention was until now.

...

Fundamentally changing surface interaction

In our recent studies, we found a direct link between the internal viscoelastic loss in the material (tand) and the strength of pressure-sensitive adhesion. Since the anomalous damping (high tand) only exists above the glass transition of LCE, and below its nematic-isotropic transition temperature TNI, the high PSA is only found in this temperature range – by heating above TNI, the surface becomes non-adhesive – but on cooling back below TNI, into the ambient range, the strong surface adhesion is recovered.

Such reversible PSA provides a specific and targeted application to realise immediate value from the LCE research. Our solution to reversible PSA is radically different as the introduction of heat or similar stimuli will fundamentally change the surface interaction and make delaminating easy, so that the surface releases much of what spoils regular tapes. The LCE adhesive tape will also recover its natural shape immediately as in isotropic phase the shape memory element of the more strongly crosslinked network will kick in. Spoiling risk is also reduced as the surface is no longer sticky when delaminating and can be quickly protected or re-applied to another surface. As such, it is a paradigm shift.

We envisage product repairs conducted quickly and easily with the existing tape reused or wearable tech (e.g. medical sensors or bandages) that can be removed with warm water or washing, ready to be reapplied once cooled and dried. The reusability of a PSA will increase the useful life of products and will challenge the “replace with new” culture in manufacturing and repairs. We also forgo the need for solvents and cleaning to remove tapes and residue. The performance of LCE, as a superior bonding and damping material, will also be powerful in terms of light-weighting, given it has higher performance per volume and leads to thinner tapes, or offshoot products like mounts, washers, bushings, etc. in sectors like automotive.

Addressing UK and EU policies on plastic waste

We see this product being used not just for adhesion but as a vibration-damping layer in sensitive systems like LIDAR to increase their accuracy or in power tools to reduce their vibration effect on the holder. There are also direct environmental benefits to the end-of-life with this technology too. Our 3d-generation exchangeable xLCE systems are crosslinked by dynamic bond-exchange chemistry, which makes it recyclable and re-processable thermoset plastic (vitrimer), unlike any standard elastomeric material. That means even when the product is thrown away, there is a possibility to recover and reuse it. The covalent crosslinks are dynamic and the polymer will flow under heat & stress, and allow itself to be remoulded.

This project addresses UK and EU-wide policies on plastic waste and recycling by introducing reusability, and fits neatly to the EU and UK priorities, e.g. the “Clean Growth” Grand Challenge of the Department for BEIS and EU Green Deal. Specifically, advanced materials technology, where opportunity lies in developing small businesses like Cambridge Smart Plastics, “closely coupled to local universities”. Through our collaboration and know-how transfers, we invest into human capital and skills not just in academic journals, but direct to industry across EU through our industrial partners.

The ‘smart materials’ is a cliché used broadly in many areas of modern technology, in each case meaning different things. Liquid Crystal Elastomers (LCE) have been invented over 30 years ago, and ever since been considered a highly promising material system for soft actuators and artificial muscles. The fully- reversible mechanical response induced by heat, or by light, is based on intrinsic material properties of Liquid Crystal Elastomers (rather than complex engineering of interacting mechanical parts), namely the coupling of two different degrees of local freedom: the translational (responsible for strength and elasticity) and the orientational (arising from liquid crystalline order, and responsible for the equilibrium shape).

Liquid Crystal Elastomer actuation

Altering the degree of local order, by heating or by other stimuli, results in the matching change of natural shape of the material – which could then be designed to exert a force or produce mechanical work. The remarkable characteristics of LCE actuation (fully reversible action; large amplitude, with a stroke of 5%-300%; stress-strain-speed response almost exactly matching the human muscle) make it highly attractive in biomedical engineering, soft robotics, smart textiles, and other fields.

Yet, there is a profound difficulty (a bottleneck), which remains the reason why this concept has not found its way into any practical devices and applications in all these years. LCE actuation requires alignment of the local anisotropy (monodomain structure) in the permanently crosslinked polymer network – which has been impossible to achieve in any useful large-scale configuration except the thin flat film, due to the unavoidable restrictions of two competing processes: orientational alignment and network crosslinking. Several spectacular demonstrations of actuation by bending the thin film have been put forward, including self- propelled robots, yet one cannot expect to obtain any significant mechanical force or extract work out of such bending motion.

...

Understanding LCE vitrimers

Recently, we made a breakthrough, developing LCE vitrimers (polymer networks covalently crosslinked by a bond-exchange reaction). Vitrimers are much more stable than other transient elastomer networks, but still allow thermal re-moulding (making the material fully renewable). This makes it possible to create complex shapes with intricate local alignment (which are impossible in traditional permanently elastomers).

The University of Cambridge, through its ERC-funded APRA project, and the technology spinoff Cambridge Smart Plastics are now jointly developing this new elastomer concept, bridging across from the academic research to marketable technology. We are tuning the material design for robust Liquid Crystal Elastomer vitrimers, imparting photo-actuation capacity with a controlled wavelength, and finally utilising them in practical-engineering actuator applications where the reversible mechanical action is stimulated by light, solvent exposure, or more traditionally – heat/cool cycles.

...

These applications include (but not limited to): continuously spinning motor to convert ‘waste heat’ into mechanical work, dynamic Braille display changing the tactile characters on demand, capillary pump and toggle flow switch for microfuidics, and active textiles woven from Liquid Crystal Elastomer fibres and yarn that reversible change their 3D shape on heating and cooling. All of these directions offer radically new ideas to industrial product designers, which are only now beginning to realise the opportunities brought about by liquid crystalline elastomers.

...

Read and download the full eBook “Liquid Crystal Elastomers: Exploring smart plastics, reversible adhesion and material automation” here

More About Stakeholder

Contributor Profile

Professor of Polymer Physics
University of Cambridge
Phone:+44 (0)1223 337 003
Website: Visit Website

...
Framed Content Aggregator - Publisher | Sponsor
...
OPEN ACCESS GOVERNMENT

Open Access Government is a digital publication that provides an in-depth perspective on key public policy areas from all around the world, including health and social care, research and innovation, technology, blockchain innovation, government, environment and energy. https://www.openaccessgovernment.org/

SKU code : 91897000-8CD4-DB44-58C9-78B647150B96
Delivery Format:
HTML ...

Immediate Delivery
...Access Rights | Content Availability:
...

...

The content of this subscriber knowledge library area, the technology platform and tools are provided for information purposes only. No legal liability or other responsibility is accepted for any errors, omissions, or any loss, damage or inconvenience caused as a result of reliance on such information, or statements on this site, or any site to which these pages connect, since we cannot control the content or take responsibility for pages maintained by external providers. Where we provide links to sites, we do not by doing so endorse any information or opinions appearing in them. This courseware includes resources copyrighted and open educational resources (OER) by multiple individuals and organizations. If someone else is given access to your account login information, that person has read, understands and accepts the Conditions of Use for this platform.

...

Objectives and Study Scope

This study has assimilated knowledge and insight from business and subject-matter experts, and from a broad spectrum of market initiatives. Building on this research, the objectives of this market research report is to provide actionable intelligence on opportunities alongside the market size of various segments, as well as fact-based information on key factors influencing the market- growth drivers, industry-specific challenges and other critical issues in terms of detailed analysis and impact.

The report in its entirety provides a comprehensive overview of the current global condition, as well as notable opportunities and challenges. The analysis reflects market size, latest trends, growth drivers, threats, opportunities, as well as key market segments. The study addresses market dynamics in several geographic segments along with market analysis for the current market environment and future scenario over the forecast period. The report also segments the market into various categories based on the product, end user, application, type, and region.
The report also studies various growth drivers and restraints impacting the  market, plus a comprehensive market and vendor landscape in addition to a SWOT analysis of the key players.  This analysis also examines the competitive landscape within each market. Market factors are assessed by examining barriers to entry and market opportunities. Strategies adopted by key players including recent developments, new product launches, merger and acquisitions, and other insightful updates are provided.

Research Process & Methodology

...

We leverage extensive primary research, our contact database, knowledge of companies and industry relationships, patent and academic journal searches, and Institutes and University associate links to frame a strong visibility in the markets and technologies we cover.

We draw on available data sources and methods to profile developments. We use computerised data mining methods and analytical techniques, including cluster and regression modelling, to identify patterns from publicly available online information on enterprise web sites.
Historical, qualitative and quantitative information is obtained principally from confidential and proprietary sources, professional network, annual reports, investor relationship presentations, and expert interviews, about key factors, such as recent trends in industry performance and identify factors underlying those trends - drivers, restraints, opportunities, and challenges influencing the growth of the market, for both, the supply and demand sides.
In addition to our own desk research, various secondary sources, such as Hoovers, Dun & Bradstreet, Bloomberg BusinessWeek, Statista, are referred to identify key players in the industry, supply chain and market size, percentage shares, splits, and breakdowns into segments and subsegments with respect to individual growth trends, prospects, and contribution to the total market.

Research Portfolio Sources:

  • BBC Monitoring

  • BMI Research: Company Reports, Industry Reports, Special Reports, Industry Forecast Scenario

  • CIMB: Company Reports, Daily Market News, Economic Reports, Industry Reports, Strategy Reports, and Yearbooks

  • Dun & Bradstreet: Country Reports, Country Riskline Reports, Economic Indicators 5yr Forecast, and Industry Reports

  • EMIS: EMIS Insight and EMIS Dealwatch

  • Enerdata: Energy Data Set, Energy Market Report, Energy Prices, LNG Trade Data and World Refineries Data

  • Euromoney: China Law and Practice, Emerging Markets, International Tax Review, Latin Finance, Managing Intellectual Property, Petroleum Economist, Project Finance, and Euromoney Magazine

  • Euromonitor International: Industry Capsules, Local Company Profiles, Sector Capsules

  • Fitch Ratings: Criteria Reports, Outlook Report, Presale Report, Press Releases, Special Reports, Transition Default Study Report

  • FocusEconomics: Consensus Forecast Country Reports

  • Ken Research: Industry Reports, Regional Industry Reports and Global Industry Reports

  • MarketLine: Company Profiles and Industry Profiles

  • OECD: Economic Outlook, Economic Surveys, Energy Prices and Taxes, Main Economic Indicators, Main Science and Technology Indicators, National Accounts, Quarterly International Trade Statistics

  • Oxford Economics: Global Industry Forecasts, Country Economic Forecasts, Industry Forecast Data, and Monthly Industry Briefings

  • Progressive Digital Media: Industry Snapshots, News, Company Profiles, Energy Business Review

  • Project Syndicate: News Commentary

  • Technavio: Global Market Assessment Reports, Regional Market Assessment Reports, and Market Assessment Country Reports

  • The Economist Intelligence Unit: Country Summaries, Industry Briefings, Industry Reports and Industry Statistics

Global Business Reviews, Research Papers, Commentary & Strategy Reports

  • World Bank

  • World Trade Organization

  • The Financial Times

  • The Wall Street Journal

  • The Wall Street Transcript

  • Bloomberg

  • Standard & Poor’s Industry Surveys

  • Thomson Research

  • Thomson Street Events

  • Reuter 3000 Xtra

  • OneSource Business

  • Hoover’s

  • MGI

  • LSE

  • MIT

  • ERA

  • BBVA

  • IDC

  • IdExec

  • Moody’s

  • Factiva

  • Forrester Research

  • Computer Economics

  • Voice and Data

  • SIA / SSIR

  • Kiplinger Forecasts

  • Dialog PRO

  • LexisNexis

  • ISI Emerging Markets

  • McKinsey

  • Deloitte

  • Oliver Wyman

  • Faulkner Information Services

  • Accenture

  • Ipsos

  • Mintel

  • Statista

  • Bureau van Dijk’s Amadeus

  • EY

  • PwC

  • Berg Insight

  • ABI research

  • Pyramid Research

  • Gartner Group

  • Juniper Research

  • MarketsandMarkets

  • GSA

  • Frost and Sullivan Analysis

  • McKinsey Global Institute

  • European Mobile and Mobility Alliance

  • Open Europe

M&A and Risk Management | Regulation

  • Thomson Mergers & Acquisitions

  • MergerStat

  • Profound

  • DDAR

  • ISS Corporate Governance

  • BoardEx

  • Board Analyst

  • Securities Mosaic

  • Varonis

  • International Tax and Business Guides

  • CoreCompensation

  • CCH Research Network

...
Forecast methodology

The future outlook “forecast” is based on a set of statistical methods such as regression analysis, industry specific drivers as well as analyst evaluations, as well as analysis of the trends that influence economic outcomes and business decision making.
The Global Economic Model is covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure. We aim update our market forecast to include the latest market developments and trends.

Forecasts, Data modelling and indicator normalisation

Review of independent forecasts for the main macroeconomic variables by the following organizations provide a holistic overview of the range of alternative opinions:

  • Cambridge Econometrics (CE)

  • The Centre for Economic and Business Research (CEBR)

  • Experian Economics (EE)

  • Oxford Economics (OE)

As a result, the reported forecasts derive from different forecasters and may not represent the view of any one forecaster over the whole of the forecast period. These projections provide an indication of what is, in our view most likely to happen, not what it will definitely happen.

Short- and medium-term forecasts are based on a “demand-side” forecasting framework, under the assumption that supply adjusts to meet demand either directly through changes in output or through the depletion of inventories.
Long-term projections rely on a supply-side framework, in which output is determined by the availability of labour and capital equipment and the growth in productivity.
Long-term growth prospects, are impacted by factors including the workforce capabilities, the openness of the economy to trade, the legal framework, fiscal policy, the degree of government regulation.

Direct contribution to GDP
The method for calculating the direct contribution of an industry to GDP, is to measure its ‘gross value added’ (GVA); that is, to calculate the difference between the industry’s total pre­tax revenue and its total bought­in costs (costs excluding wages and salaries).

Forecasts of GDP growth: GDP = CN+IN+GS+NEX

GDP growth estimates take into account:

  • Consumption, expressed as a function of income, wealth, prices and interest rates;

  • Investment as a function of the return on capital and changes in capacity utilization; Government spending as a function of intervention initiatives and state of the economy;

  • Net exports as a function of global economic conditions.

CLICK BELOW TO LEARN MORE
...

Market Quantification
All relevant markets are quantified utilizing revenue figures for the forecast period. The Compound Annual Growth Rate (CAGR) within each segment is used to measure growth and to extrapolate data when figures are not publicly available.

Revenues

Our market segments reflect major categories and subcategories of the global market, followed by an analysis of statistical data covering national spending and international trade relations and patterns. Market values reflect revenues paid by the final customer / end user to vendors and service providers either directly or through distribution channels, excluding VAT. Local currencies are converted to USD using the yearly average exchange rates of local currencies to the USD for the respective year as provided by the IMF World Economic Outlook Database.

Industry Life Cycle Market Phase

Market phase is determined using factors in the Industry Life Cycle model. The adapted market phase definitions are as follows:

  • Nascent: New market need not yet determined; growth begins increasing toward end of cycle

  • Growth: Growth trajectory picks up; high growth rates

  • Mature: Typically fewer firms than growth phase, as dominant solutions continue to capture the majority of market share and market consolidation occurs, displaying lower growth rates that are typically on par with the general economy

  • Decline: Further market consolidation, rapidly declining growth rates

...

The Global Economic Model
The Global Economic Model brings together macroeconomic and sectoral forecasts for quantifying the key relationships.

The model is a hybrid statistical model that uses macroeconomic variables and inter-industry linkages to forecast sectoral output. The model is used to forecast not just output, but prices, wages, employment and investment. The principal variables driving the industry model are the components of final demand, which directly or indirectly determine the demand facing each industry. However, other macroeconomic assumptions — in particular exchange rates, as well as world commodity prices — also enter into the equation, as well as other industry specific factors that have been or are expected to impact.

  • Vector Auto Regression (VAR) statistical models capturing the linear interdependencies among multiple time series, are best used for short-term forecasting, whereby shocks to demand will generate economic cycles that can be influenced by fiscal and monetary policy.

  • Dynamic-Stochastic Equilibrium (DSE) models replicate the behaviour of the economy by analyzing the interaction of economic variables, whereby output is determined by supply side factors, such as investment, demographics, labour participation and productivity.

  • Dynamic Econometric Error Correction (DEEC) modelling combines VAR and DSE models by estimating the speed at which a dependent variable returns to its equilibrium after a shock, as well as assessing the impact of a company, industry, new technology, regulation, or market change. DEEC modelling is best suited for forecasting.

Forecasts of GDP growth per capita based on these factors can then be combined with demographic projections to give forecasts for overall GDP growth.
Wherever possible, publicly available data from official sources are used for the latest available year. Qualitative indicators are normalised (on the basis of: Normalised x = (x - Min(x)) / (Max(x) - Min(x)) where Min(x) and Max(x) are, the lowest and highest values for any given indicator respectively) and then aggregated across categories to enable an overall comparison. The normalised value is then transformed into a positive number on a scale of 0 to 100. The weighting assigned to each indicator can be changed to reflect different assumptions about their relative importance.

CLICK BELOW TO LEARN MORE
...

The principal explanatory variable in each industry’s output equation is the Total Demand variable, encompassing exogenous macroeconomic assumptions, consumer spending and investment, and intermediate demand for goods and services by sectors of the economy for use as inputs in the production of their own goods and services.

Elasticities
Elasticity measures the response of one economic variable to a change in another economic variable, whether the good or service is demanded as an input into a final product or whether it is the final product, and provides insight into the proportional impact of different economic actions and policy decisions.
Demand elasticities measure the change in the quantity demanded of a particular good or service as a result of changes to other economic variables, such as its own price, the price of competing or complementary goods and services, income levels, taxes.
Demand elasticities can be influenced by several factors. Each of these factors, along with the specific characteristics of the product, will interact to determine its overall responsiveness of demand to changes in prices and incomes.
The individual characteristics of a good or service will have an impact, but there are also a number of general factors that will typically affect the sensitivity of demand, such as the availability of substitutes, whereby the elasticity is typically higher the greater the number of available substitutes, as consumers can easily switch between different products.
The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
Proportion of the budget consumed by the item. Products that consume a large portion of the consumer’s budget tend to have greater elasticity.
Elasticities tend to be greater over the long run because consumers have more time to adjust their behaviour.
Finally, if the product or service is an input into a final product then the price elasticity will depend on the price elasticity of the final product, its cost share in the production costs, and the availability of substitutes for that good or service.

Prices
Prices are also forecast using an input-output framework. Input costs have two components; labour costs are driven by wages, while intermediate costs are computed as an input-output weighted aggregate of input sectors’ prices. Employment is a function of output and real sectoral wages, that are forecast as a function of whole economy growth in wages. Investment is forecast as a function of output and aggregate level business investment.

CLICK BELOW TO LEARN MORE
...