If a good has an elastic demand, the result of a slight price increase will result in a significant change in the demand, which will be more than the proportional change in its price.
What is an elastic demand?
A condition when a slight change in the price of a product or a service leads to a significant change in the demand for the product, then such a product or service has an elastic demand.
Hence, the significance of elastic demand is aforementioned.
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