RELATIVELY ELASTIC DEMAND RELATIVELY INELASTIC DEMAND

Relatively elastic demand	Relatively inelastic demand
1.      Meaning If the % change in quantity demanded of a commodity is more than proportionate change in its price, the demand is said to be relatively elastic demand. 2.      Numerical Value The numerical value of relatively elastic is >1. 4.      Examples Demand for comports and luxuries. E.g. car, air conditioners have relatively elastic demand.	If the % change in quantity demanded of a commodity is less than proportionate change in its price, the demand is said to be relatively inelastic demand The numerical value of relatively elastic is <1 Examples Demand for some habituated goods such as alcohol, cigarettes etc. Have relatively inelastic demand.