Elastic Demand Formula

Elastic demand is said to be the condition in which the price elasticity of demand is always greater than one.

It means that the percentage change in quantity demanded exceeds the percentage change in price.

The mathematical representation of elastic demand is as follows

Elastic Demand = (% change in quantity / % change in price) > 1

Elastic demand curve

The demand curve is a great way to determine if the demand is elastic or inelastic. An elastic demand curve will appear flat as the elasticity increases. A perfectly elastic demand curve will be horizontal.

Examples of elastic demand

Let us take an example of elastic demand to understand it better.

If the price of a quantity increases, then the number of products sold will decrease and vice versa.

This concludes the elastic demand formula, which is a very important concept in Economics. For more such interesting concepts on Economics for Class 12, stay tuned to BYJU’S.

Important Formulas for Commerce Students

National Income Formula Marginal Cost Formula
GDP Deflator Formula Price Elasticity of Demand Formula Total Cost Formula
GDP Formula Marginal Revenue Formula Money Multiplier Formula
Inflation Rate Formula Total Revenue Formula Consumer Surplus Formula
Unemployment Rate Formula Nominal GDP Formula Balance of Payments Formula
Consumer Price Index Formula Real GDP Formula Income Elasticity of Demand Formula

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