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 the quantity demanded exceeds the percentage change in price.
The mathematical representation of elastic demand is as follows:
Elastic demand = (Percentage change in quantity/Percentage change in price) > 1
Elastic Demand Curve
The demand curve is a great way to determine if the demand is elastic or inelastic. As the elasticity increases, an elastic demand curve will start to appear flat. 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 article on Elastic Demand Formula, which is a very important concept in economics. To read more such interesting concepts, stay tuned to BYJU’S.