What is Elasticity of demand? When price is rising up and also demand is high?

Question

What is Elasticity of demand? When price is rising up and also demand is high?

Answer 1

Did you know that there is an economics section under 'social science'?

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes is price.

When a small proportionate change in price causes a great proportionate change in the quantity demanded the demand curve is said to be elastic.

When a large proportionate change in price causes a small proportionate change in quantity demanded the demand curve is said to be inelastic.

When the demand curve is horizontal the curve is infinitely elastic.

When the demand curve is vertical the curve is infinately inelastic.

Answer 2

Elasticity of demand should be less than 1 because it is inelastic.

If the demand is unaffected by a rise in price, it's inelastic. If the demand depends greatly on the price and its changes, it's elastic. Basically, that's it.