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What is elastic demand? What is inelastic demand?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 14AA

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What is elastic demand? What is inelastic demand?

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When the initial price is high and the initial quantity is low, the percentage change in quantity exceeds the percentage change in price, making demand elastic.

When the elasticity of demand is >1, the demand is elastic

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