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Distinguish between Relatively elastic demand and relatively inelastic demand. - Economics

Distinguish Between

Distinguish between Relatively elastic demand and relatively inelastic demand.

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Solution

Relatively elastic demand
Relatively inelastic demand
In this case, the change in price leads to a proportionately large change in the quantity demanded.
In this case, the change in price leads to a proportionately less change in the quantity demanded. 
It represents a flatter demand curve.
It represents a steeper demand curve.
Symbolically it is represented as  Ed > 1
Symbolically it is represented as Ed < 1
For example - 50% fall in price leads to 100% rise in quantity demanded.
For example - 50% fall in price leads to 25% rise in quantity demanded.
Concept: Importance of Price Elasticity of Demand
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 3.2 Elasticity of Demand
Exercise | Q 5. (1) | Page 35
Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 4 Elasticity of Demand
Exercise | Q 1.2 | Page 32
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