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

2715 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

Discuss measures to reduce an imbalance in the current account?

Where on a firm diagram would a firm be at a profit maximising equilibrium?

What are the key components of Aggregate Demand?

Analyse two economic benefits of globalisation. [6]