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Demand is said to be price elastic if there is a relatively large change in the quantity demanded of a product following a change in its price: that is, buyers are very responsive to changes in price.

If the PED for a product is greater than 1 (ignoring the minus sign), then demand is price elastic.

This is because the percentage change in quantity demanded is larger than the percentage change in the price of the product

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Economics notes  on

Elastic demand

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