Relatively Elastic Demand

Demand is said to be relatively elastic when a given change in price produces a more than proportionate change in quantity demanded. For example when price falls by 20% and demand rises by 50% (more than 20%), then it is a case of relatively elastic demand.

In fig.  13 , fall in price is p₁p₂ and price is P₁P₂ and rise in demand is Q₁Q₂, is Since rise is demand Q₁Q₂,  is greater than the fall in price elasticity of demand. Here the price elasticity of demand is greater than one.