How do you know whether the demand for a good is price elastic or price inelastic?

If the Price Elasticity of Demand is between 0 and 1, which means that the percentage change in demand is smaller than the percentage change in price, then the demand is price inelastic.If the Price Elasticity of Demand is greater than 1, which means that the demand responds more proportionately to the change in price, then the demand is price elastic.

Answered by Economics tutor

2111 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why do markets fail?


What are the trade-offs with other macroeconomic policy objectives of a fall in the unemployment rate?


The price of a banana has increased from £0.10 to £0.20. As a result quantity demanded of apples increased from 2.4 million units to 3.6 million units. Calculate the cross price elasticity of demand and interpret the value..


Discuss the perfect competition model?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning