What is ELASTIC Demand? Elastic DEMAND (Definition and Example)

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What is elastic demand?
Elastic demand explained ⬇️
Elastic demand occurs when a small change in price leads to a proportionately larger change in the quantity demanded. In other words, when the price of a product changes, the quantity demanded changes significantly in response. This results in a relatively elastic demand curve.
Let's illustrate elastic demand with an example:
Suppose you own a bookstore, and you sell novels for $10 each. You typically sell 1,000 novels per month at this price. Now, let's say you decide to increase the price of novels to $15 each.
With the price increase, some customers may decide that the novels are now too expensive and choose not to buy them, while others may still be willing to purchase at the higher price but buy fewer books.
As a result, the quantity demanded decreases significantly in response to the price increase. Ergo, after the price increase, the quantity demanded drops to 500 novels per month.

[@DariusATent]

If you're product is in this category of price elasticity, do make sure you think twice before any price increase!