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 ▸Explain how monetary policy can be used to prevent business cycles
Explain using a diagram why when people have medical insurance the PED for medical treatment is likely to be very low whilst the YED is likely to be high
What is meant by comparative advantage?
Is the demand for food likely to be Price elastic or Inelastic?