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.

Answered by Lucy F. Economics tutor

1791 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What factors cause the aggregate demand curve to shift?


Using a demand and supply diagram, comment on the likely impact on the market for new houses of relaxing planning regulations? (6)


Assume the market for Easter rabbits is currently at long term equilibrium. Assume Australia is the largest supplier of easter rabbits. A sudden explosion in the rabbit population of Australia leading up to Easter. How will the market react?


Why does excessive consumption of alcohol lead to negative externalities ?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences