ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. If the formula creates an absolute value greater than 1, the demand is elastic.

Detailed explanation-2: -Demand is inelastic when a change in price causes a relatively smaller change in quantity demanded.

Detailed explanation-3: -Elastic demand occurs when changes in price cause a disproportionately large change in quantity demanded. For example, a good with elastic demand might see its price increase by 10%, but demand falls by 30% as a result.

Detailed explanation-4: -If a large change in price results in little change in the quantity demanded, then demand is inelastic. If a small change in price results in large changes in the quantity demanded, then demand is elastic.

Detailed explanation-5: -Elastic demand occurs when the price of a good or service affects consumer demand. If the price goes down just a little, consumers will buy a lot more. If prices rise just a bit, they’ll stop buying as much and wait for prices to return to normal.