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 are no supernormal profits made in perfect competition in the long run?
How does a natural monopoly differ from the more general monopoly market structure we're used to?
Explain which barriers to entry an new airline might face when entering the international flight market
How can the government use Demand side policies to boost economic growth