Question

With the help of diagram, explain the following case of elasticity:

Relatively inelastic demand curve

Explain graphically the following:

Relatively Inelastic Demand

Answer 1

Relatively inelastic demand curve: 

When a substantial change in prices has little effect on extension or contraction in quantity demanded of the commodity, the demand is known as relatively inelastic demand. The demands of salt, shoes, needles, etc., belong to this class.