Definitions for "ELASTIC DEMAND"
a situation in which a specific percentage change in price leads to a larger percentage change in the quantity demanded; i.e., consumer demand for the product or service is price-sensitive. Example: a three percent reduction in price results in a five percent jump in the quantity demanded. See inelastic demand, skimming price policy, and penetration price policy.
When the percentage change in the quantity demanded exceeds the percentage change in price. (p. 110)
A good with a price elasticity less than minus one. If price increases by per cent, the quantity demanded of an elastic product drops by a larger percentage than .