Relatively Elastic Demand :
1. When percentage change in quantity demanded is greater than the percentage change in price then demand is said to be Relatively Elastic demand.
2. The numerical co-efficient is greater than one (e > 1).
3. Demand curve slopes flatter.
4.
5. Example : luxury goods like LCD, TV, Car etc.
Relatively inelastic demand :
1. When percentage change in quantity demanded is less than percentage change in price then demand is said to be Relatively Inelastic demand.
2. The numerical co-efficient is less than one (e < 1).
3. Demand curve slopes steeper.
4.
5. Example : foodgrains.
