Share This Article:

Economic Definition of elastic demand. Defined.

Offline Version: PDF

Term elastic demand Definition: Relatively small changes in demand price cause relatively larger changes in quantity demanded. Elastic demand means that changes in the quantity demanded are relatively responsive to changes in the demand price. An elastic demand has a coefficient of elasticity greater than one (the negative value is ignored). You might want to compare elastic demand to inelastic demand, elastic supply, and inelastic supply.

 

« eight-firm concentration ratio | elastic supply »

Permalink: https://glossary.econguru.com/economic-term/elastic+demand

Alphabetical Reference to Over 2,000 Economic Terms