Q.5. Distinguish between: Relatively elastic demand and relatively inelastic demand

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.