If the quantity demanded of a good changes drastically when the price changes, the good is relatively elastic.
If the quantity demanded of a good does not change much when the price changes, the good is relatively inelastic.
Based on this graph, the good being shown is most likely inelastic.
If the quantity demanded of the good changes significantly when the change in price takes place then the good is termed as elastic.
• The demand elasticity or the elasticity of the demand signifies how sensitive demand for a good is relative to the modifications of other economic elements like income or price.
• An elastic good can be illustrated as one in which a variation in the price results in a substantial shift in demand.
• Examples of elastic goods are some luxury items and some beverages and food items.
• In case, if the demand for a good remains as such even if the price modifies then the demand is considered inelastic.
Thus, when the demand for the good changes significantly with the price change, then the good is termed an elastic good.
To know more about:
https://brainly.com/question/11475425
