Relatively elastic demand
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Relatively inelastic demand
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1. Meaning
If the % change in
quantity demanded of a commodity is more than proportionate change in its
price, the demand is said to be relatively elastic demand.
2. Numerical Value
The numerical value of relatively elastic is >1.
4. Examples
Demand
for comports and luxuries. E.g. car, air conditioners have relatively elastic
demand.
|
If the % change in
quantity demanded of a commodity is less than proportionate change in its
price, the demand is said to be relatively inelastic demand
The numerical value of relatively elastic is <1
Examples
Demand for some habituated goods such as alcohol, cigarettes etc.
Have relatively inelastic demand.
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RELATIVELY ELASTIC DEMAND RELATIVELY INELASTIC DEMAND
