Define Or Explain the Following Concept: Elastic Demand - Economics

Sum

Define or explain the following concept:

Elastic Demand

Solution

Elastic demand for a good implies that the demand for a good is highly responsive to its price. In this case, the percentage change in demand is greater than the percentage change in price and |Ed| > 1. This implies that a little change in price will lead to a significant change in quantity demanded.

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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 4 Elasticity of Demand
Exercise | Q 1.4 | Page 31