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 ▸What is the impact of deflation?
Using a demand and supply diagram, explain how an increase in taxes on domestic fuel will affect the domestic fuel market
Define a firm's shutdown point, and explain it intuitively using an example
How best to answer a question on how negative externalities lead to market failure.