Question

Distinguish between (Any Three) 

Relatively more elastic demand and relatively less elastic demand.

Answer 1

Relatively more elastic demand and relatively less elastic demand. 

POINTS	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.	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
2. Numerical Value	The numerical value of relatively elastic is >1.	The numerical value of relatively elastic is <1
3. Figure
4. Explaination	It can be interpreted from above fig. that the proportionate change in demand from OQ1 to OQ2 is relatively larger than the proportionate change in price from OP1 to OP2. Relatively elastic demand has a practical application as demand for many of products respond in the same manner with respect to change in their prices.	It can be interpreted from above figure that the proportionate change in demand from OQ1 to OQ2 is relatively smaller than the proportionate change in price from OP1 to OP2. Relatively inelastic demand has a practical application as demand for many of products respond in the same manner with respect to change in their prices.
5. Example	Demand for comports and luxuries. E.g. car, air conditioners have relatively elastic demand.	Demand for some habituated goods such as alcohol, cigarettes etc. Have relatively inelastic demand.