If elasticity of demand is greater than I and less than infinity, demand is said to be
Answer Details
When we talk about elasticity of demand, we are referring to the responsiveness of the quantity demanded of a product to a change in its price.
If the elasticity of demand is greater than 1, but less than infinity, then we say that the demand is "elastic". This means that a change in the price of the product will result in a relatively larger change in the quantity demanded.
For example, if the price of a product increases by 10%, but the quantity demanded decreases by more than 10%, then we say that the demand is elastic. In other words, customers are very sensitive to changes in the price of the product, and are likely to look for substitutes or alternatives if the price increases.
On the other hand, if the elasticity of demand is less than 1, then we say that the demand is "inelastic". This means that a change in the price of the product will result in a relatively smaller change in the quantity demanded.
For example, if the price of a product increases by 10%, but the quantity demanded only decreases by less than 10%, then we say that the demand is inelastic. In other words, customers are less sensitive to changes in the price of the product, and are less likely to look for substitutes or alternatives if the price increases.
Therefore, if the elasticity of demand is between 1 and infinity, then the demand is elastic.