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’s 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.