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When is demand elastic?

Economics

When is demand elastic?

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Demand is elastic with a shift in one economic factor like price or consumer income leads to a change in demand that is relatively high. Economists consider a change in demand with a value above 1 to be high, so if a drop in price by 10% leads to a 25% increase in demand, the price has an elasticity of 2.5 (.25/.1) which shows that its demand is elastic.