Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter 3 - (B) ELASTICITY OF DEMAND [Latest edition]
Q.5. Distinguish between:
Relatively elastic demand and relatively inelastic demand.
Relatively elastic demand | Relatively inelastic demand |
In this case, the change in price leads to a proportionately large change in the quantity demanded. | In this case, the change in price leads to a proportionately less change in the quantity demanded. |
It represents a flatter demand curve. | It represents a steeper demand curve. |
Symbolically it is represented as Ed > 1 | Symbolically it is represented as Ed < 1 |
For example- 50% fall in price leads to 100% rise in quantity demanded. | For example- 50% fall in price leads to 25% rise in quantity demanded. |
