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 ▸Comment on the long and short term cross-price elasticity of demand for petrol and diesel.
Explain how fiscal stimulus might be used to bring about supply-side improvements in the UK economy.
Discuss whether than price discrimination is always beneficial
How does increasing interest rates affect inflation?