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

1942 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the difference between absolute and comparative advantage?


What is the difference between factors that affect supply and the elasticity of supply?


If the market price of a good is above the equilibrium price, explain the chain of events that should occur to return the price of the good to equilibrium


What is the law of diminishing (marginal) returns?


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences