Economics Elasticity Of Demand Questions
The difference between elastic and inelastic demand lies in the responsiveness of quantity demanded to changes in price. Elastic demand refers to a situation where a small change in price leads to a relatively larger change in quantity demanded. In other words, when demand is elastic, consumers are highly responsive to price changes. On the other hand, inelastic demand refers to a situation where a change in price leads to a relatively smaller change in quantity demanded. In this case, consumers are less responsive to price changes.