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Question
What is a better Elastic or Inelastic Demand
What is a better Elastic or Inelastic Demand
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Solution
Elastic demand means that when another economic factor changes typically the price of the good or service, there is a significant shift in the quantity requested, while inelastic demand means that when another economic factor is adjusted, there is just a minor or no change in the quantity requested for the good or service.
An inelastic demand is one in which the change in the quantity requested is minimal due to a price change. If a number greater than 1 is generated by the formula, then the demand is elastic. Quantity shifts faster than price, in other words. The demand is inelastic if the number is less than 1.
Elastic demand means that when another economic factor changes typically the price of the good or service, there is a significant shift in the quantity requested, while inelastic demand means that when another economic factor is adjusted, there is just a minor or no change in the quantity requested for the good or service.
An inelastic demand is one in which the change in the quantity requested is minimal due to a price change. If a number greater than 1 is generated by the formula, then the demand is elastic. Quantity shifts faster than price, in other words. The demand is inelastic if the number is less than 1.
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