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 difference between accounting and economic profit?
Describe how diminishing marginal returns affect a firm's average cost.
What are the possible effects of a decrease in the interest rate set by the central bank?
What is the basic Economic problem, and how does Economics as a discipline approach this?