Question

Distinguish between:

Relatively Elastic Demand and Perfectly Elastic Demand

Answer 1

	Relatively Elastic Demand	Perfectly Elastic Demand
Meaning	A commodity's demand is said to be relatively elastic when a corresponding change in its price causes a greater than proportionate change in its quantity requested.	A commodity's demand is said to be completely elastic when a modest proportionate change in its price results in an infinite (unlimited) proportionate change in its quantity requested.
Numerical Value	The numerical value of demand elasticity is greater than one in the event of relatively elastic demand. (Ed > 1)	The numerical value of demand elasticity is infinite in the case of perfectly elastic demand. (Ed = ∞)