ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Elastic demand occurs when a product or service’s demanded quantity changes by a greater percentage than changes in price. The opposite of elastic demand is inelastic demand, which occurs when consumers buy largely the same quantity regardless of price.

Detailed explanation-2: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price.

Detailed explanation-3: -We say that demand is elastic when quantity demanded changes a lot when the price changes; more precisely, the percentage change in quantity demanded is greater than the percentage change in price. In this case, quantity demanded is very responsive to changes in price.