Answers>Economics>A Level>Article

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

2663 Views

See similar Economics A Level tutors

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

Related Economics A Level answers

How do I answer an evaluation question?

What is the "Tragedy of the Commons" and how may it be solved?

Why might a perfectly competitive firm make abnormal profit in the short run but only normal profit in the long run?

Define the term ‘externalities’