Define the term "elastic demand"
Elasticity of demand is the percentage change in demand quantity divided by the percentage change in price. If demand is very elastic it means that it is very sensitive to changes in price. A price change of 1 price unit will result in a proportionally larger change in demand. The demand curve (price quantity diagram) has a small slope that is smaller than 45 degrees.
LF
Related Economics A Level answers
All answers ▸Why does the MC Curve cut the AVC curve at the AVC Curve’s lowest point?
Do the benefits of protectionist trade policies outweigh the costs?
Discuss the effectiveness of fiscal policy to counter recession
What is an economic recovery and how is it related to unemployment?